Billionaire banker and Kotak Mahindra Bank Managing Director Uday Kotak is all set to sell stake worth around Rs 6,000 crore in the private sector lender to comply with a settlement agreement struck with the Reserve Bank of India (RBI) in January on promoter stake dilution, sources told Moneycontrol.
The move will bring the curtains down on an extended standoff between the regulator and the bank over the reduction in promoter shareholding.
“The promoter stake sale will happen via block/bulk deals, which is likely to be launched shortly. Kotak Mahindra Bank has already issued shares as part of the recent Rs 7,000 crore qualified institutional placement (QIP), so Kotak may not have to sell 4 percent stake to meet the 26 percent promoter stake requirement, which was the case earlier,” a person familiar with the stake sale plans said.
“This deal should roughly see the sale of 2-3 percent stake,” said a second person.