Kotak Mahindra Bank has started inviting bids for its qualified institutional placement (QIP) of 6.5 crore equity shares. The floor price, based on the SEBI formula, is Rs 1147.75 per share. The bank has said that it may "at its discretion consider offering a discount of not more than 5 percent on the floor price so calculated for the issue."

The discounted price works out to around Rs 1090 per share and at that price, the bank would be able to raise Rs 7087.36 crore. After the QIP, Kotak Bank's tier-I capital ratio will strengthen by 221 bps to 21.4 percent; making it the strongest capitalised bank in India.

The networth of the bank will increase by 14.5 percent to Rs 56102.4 crore. This means, the book value per share of the bank will rise by 10.7 percent to Rs 283.6 per share.

Following the share sale, the promoter's stake in the bank will reduce to 28.94 percent from 29.92 percent earlier.

First Published:May 26, 2020 5:01 PM IST