Shares of Kotak Mahindra Bank rallied 2.9 percent intraday on February 19 following approval from the RBI for promoter's shareholding dilution plan.
The stock touched an intraday record high of Rs 1,739.95, rising nearly 34 percent in last one year. It was quoting at Rs 1,712.10, up Rs 21.05, or 1.24 percent on the BSE at 0933 hours IST.
"The Reserve Bank of India has granted its final approval in the matter relating to dilution of promoters' shareholding in the bank," the private sector lender said in its BSE filing.
In late January, the RBI had conveyed its in-principle acceptance for the shareholding plan.
As per its plan, promoters' voting rights in the bank will be capped to 20 percent of paid-up voting equity share capital (PUVESC) until March 31, 2020 and the same will be capped to 15 percent of PUVESC from April 1, 2020 onwards.
Promoters' shareholding in the bank will be reduced to 26 percent of PUVESC of the bank within six months from the date of final approval of the RBI; thereafter, the promoters will not purchase any further paid up voting equity shares' of the bank till the percentage of promoters' shareholding reaches 15 percent of PUVESC of the bank or such higher percentage as may be permitted by RBI from time to time, the bank stated in its plan.
The promoters will be entitled to purchase paid-up voting equity shares of the bank up to 15 percent of the PUVESC of the bank or such higher percentage as may be permitted in the future, and exercise voting rights on such shares, the bank said.
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