As market awaits Kotak Mahindra Bank's announcement today, speculations over a possibility of big buyouts are doing the rounds.
There is speculation of it buying out Axis Bank. Although that looks unlikely, CNBC-TV18 spoke to Anil Singhvi, Chairman, Ican Investment Advisors to discuss the possibility of this happening and the process that the bank would go through to acquire the sake if at all.
Some analysts also say that Kotak may look at buying stake in one of the NBFCs.
Kotak Bank has also called for a board meeting on Thursday to raise funds triggering another reason for an acquisition announcement.
According to a filing by the bank with the stock exchanges, the board will decide on “raising of equity capital through rights issue, private placement, FPO (follow-on public offer), QIP (qualified institutional placement), GDR (global depositary receipt), ADR (American depositary receipt) or through any other permissible mode”.
Singhvi believes calling a press conference today, and a board meeting tomorrow, definitely tells you that it is a precursor to something big and Axis Bank squarely fits into the scheme of things for Kotak. Moreover, if this really goes through then it would be
Moreover, if this really goes through then it would be the best bet for the minority shareholders of both Axis Bank and Kotak Mahindra Bank.
For the entire discussion, watch video
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