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Kotak Mahindra ropes in GIC among other investors for Rs 7,460 crore-QIP: Report

Top mutual funds including Aditya Birla Sun Life MF, SBI MF, HDFC MF and ICICI Prudential MF, also bought shares in the issue

May 28, 2020 / 12:39 PM IST

Kotak Mahindra Bank has reportedly roped in several global investors for the Rs 7,460.38 crore qualified institutional placement (QIP) the private bank's board approved on May 26.

According to an Economic Times report, Government of Singapore Investment Corp, Oppenheimer, Canada Pension Plan Investment Board and Capital International are some of the global investors that participated in the qualified institutional placement. The report, quoting sources, further stated that the QIP has been oversubscribed by more than three times.

Top mutual funds including Aditya Birla Sun Life MF, SBI MF, HDFC MF and ICICI Prudential MF, also bought shares in the issue, the report added.

Kotak Mahindra Bank had set a floor price of Rs 1,147.75 share for the offering. The bank's board had sanctioned the fundraising in April.
As per Sebi norms, the bank can offer a discount of 5 percent on the floor price to investors.

"The board passed a resolution for approving the opening of the issue today (May 26); approving and adopting the preliminary placement document in connection with the Issue; and approving the floor price for the issue, based on the pricing formula as prescribed under the SEBI ICDR Regulations," said Kotak Mahindra Bank in a regulatory filing.

The Bank reported a standalone profit of Rs 1,266.6 crore for the quarter ended March 2020, registering a 10 percent fall due to a significant jump in COVID-19 related provisions.

Provisions and contingencies shot up 6-fold to Rs 1,047.47 crore in Q4FY20 against Rs 171.26 crore in same period last year, while the sequential rise was 135.9 percent. Net interest income, the difference between interest earned and expended, grew by 17.2 percent year-on-year to Rs 3,559.65 crore for March quarter, with net interest margin improving 26 basis points YoY to 4.72 percent in Q4.

The stock was quoting at Rs 1246.15, up Rs 29.40, or 2.42 percent at 11:01. It touched an intraday high of Rs 1,254.55 and an intraday low of Rs 1,202.05 on the BSE.
Moneycontrol News
first published: May 28, 2020 12:38 pm
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