The board of Kotak Mahindra Bank NSE 0.49 % on Wednesday approved a share sale to raise over Rs 7,000 by way of through a private placement, follow-on public offering (FPO) or Qualified Institutions Placement (QIP).
The board has accorded its approval for raising of capital by way of issue of equity shares by the bank for up to 6,50,00,000 (six crore and fifty lakh) shares of Rs 5 each, the company said in a statement.
At the last closing price, the issue would rake in Rs 7,350 crore for the bank.
The private lender said the share sale will be either through a private placement, FPO, QIP or a combination thereof, as may be considered appropriate.
The issue comes at a time when financial institutions may need capital in order to fend off worries of escalation of bad loans.
Shares of the company gained over 2 per cent following the news. It was quoting at Rs 1,154 on BSE at 12.26 pm. The stock has fallen 31 per cent in the current calendar year as investors fear rise in defaults once lockdown is over.