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Uday Kotak sells $261 mn stake in Kotak Mahindra Bank

By Reuters

  • 22 May 2017
Uday Kotak sells $261 mn stake in Kotak Mahindra Bank
Udak Kotak, MD, Kotak Mahindra Bank | Credit: Reuters

Uday Kotak, the billionaire head of India's Kotak Mahindra Bank Ltd, sold a less than 1 percent stake in the lender in stock market transactions on Monday, complying with a Reserve Bank of India (RBI) order to cut his holding.

The RBI asked Kotak to lower his holding in the bank to 30 percent by end-June, 20 percent by end-December next year, and to 15 percent by March 31, 2020.

On Monday, Kotak sold 18 million shares in the lender for 16.87 billion rupees ($261 million), lowering his ownership of the bank to 29.79 percent, according to a regulatory filing.

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In March, Kotak sold an about 1.5 percent stake in the bank to Canada's two largest pension funds - Canada Pension Plan Investment Board and Caisse de depot et placement du Quebec.

Earlier this month, the bank raised about $900 million by selling new shares to funds, diluting Kotak's holding further.

Ahead of the deal on Monday, Kotak owned 30.74 percent of the lender.

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Shares in Kotak Mahindra Bank, which has the third-highest market capitalisation among India's banks, closed 0.4 percent higher at 941.25 rupees on Monday.

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