Kotak Mahindra Bank is having such a fantastic run today, showing that even the market celebrates when the hatchets are buried.
The stock, which had closed yesterday at Rs.1628, soared to an intraday high at Rs.1720, which is not too far from its 52-week high of Rs.1734.35.
The company has finally ended the ongoing feud with RBI regarding dilution of promoters shareholding in the Bank.
RBI has conveyed its in-principle acceptance for the following:
(a) Promoters voting rights in the Bank to be capped to 20% of paid-up voting equity share capital (PUVESC) until March 31, 2020;
(b) Promoters’ voting rights in the Bank to be capped to 15% of PUVESC from April 1, 2020 onwards;
(c) Promoters’ shareholding in the Bank to be reduced to 26% of PUVESC of the Bank within six months from the date of final approval of the RBI;
(d) Thereafter, the promoters will not purchase any further paid up voting equity shares’ of the Bank till the percentage of promoters’ shareholding reaches 15% of PUVESC of the Bank or such higher percentage as may be permitted by RBI from time to time;
(e) The promoters will be entitled to purchase paid-up voting equity shares of the Bank up to 15% of the PUVESC of the Bank or such higher percentage as may be permitted in the future, and exercise voting rights on such shares.
Kotak’s Board has resolved to abide by the above.