Kotak Mahindra Bank to raise equity capital through issuance of securities up to 6.2 crore

Highlights:

1. The bank to use the equity capital to pursue consolidation opportunities in the Indian banking and financial services space

2. It aims to use raised funds to capitalise on unprecedented opportunities in acquisition and resolution of stressed assets in banking sector 

3. To use funds to finance organic growth such as new opportunities in digital expansion, domestic lending, international lending, etc., 

With an aim to finance consolidation opportunities in banking and financial space, expanding subsidiaries, resolving bad loans, among others Kotak Mahindra Bank has announced on Thursday to raise equity capital through issuance of securities up to 6.2 crore. 

"...the board has accorded its approval for raising of equity capital by the company through issue of equity shares, global depository receipts, American depository receipts and/ or other permissible securities up to an aggregate issuance of 6.2 crore," cited Kotak Mahindra Bank in a filing to the BSE.

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"Equity shares of Rs 5 each, through rights issue, public issue or private placement, including a Qualified Institutional Placement (QIP) or through any other permissible mode or combination thereof, as may be considered appropriate, subject to shareholder approval as applicable and applicable regulatory/statutory approvals and requirements," it added. 

The bank will use the equity capital to pursue consolidation opportunities in the Indian banking and financial services space. 

Besides, it will use the funds to capitalise on unprecedented opportunities in acquisition and resolution of stressed assets in banking sector including participation in a 'Bad Bank'.

Moreover, the bank will use capital to fund its organic growth such as new opportunities in digital expansion, domestic lending, international lending, etc., In addition, it will use funds to finance growth of its subsidiaries. 

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At 13:11 hours, the stock of Kotak Mahindra Bank was trading up 0.98% or Rs 8.40 at Rs 867.35 on the BSE.

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