Date:29/09/2005 URL: http://www.thehindubusinessline.com/2005/09/29/stories/2005092901820600.htm

Back Kotak Mahindra to issue 1.5 cr shares

Our Bureau

Mumbai , Sept 28

KOTAK Mahindra Bank Ltd on Wednesday announced a fresh issue of 1.5 crore equity shares either in the domestic or international market.

In a notice to the stock exchanges, the bank said that this constitutes around five per cent of the current paid-up capital.

The actual timing, quantum, price, and other terms and conditions of the proposed issue shall be decided by the board, the notice said.

The issue will enable the promoters to bring down their stake from the current level of around 59 per cent to about 55 per cent, said a senior bank official.

The current net worth of the bank is about Rs 750 crore, which will increase by about Rs 300 core post-issue, said Mr Dipak Gupta, Executive Director.

The fresh capital would help in improving capital adequacy of the bank and enable higher growth. The capital adequacy as on June 30, 2005 was 12.52 per cent. "We need to add equity for normal requirements of the bank as there is significant growth," Mr Gupta said.

The bank had issued a bonus issue of shares in the ratio of 3:2 in June this year.