Uday Kotak, the famous Billionaire Banker, who had a long run-in with the Reserve Bank of India over his excess personal holding in Kotak Mahindra Bank, is all about to sell a 2.8% stake in it for an estimated amount of Rs 6,800 crore.
The curtains on a long standoff would come down between the regulator and the bank over the issue, which saw Kotak dragging the RBI to the Bombay High Court in December 2018, the case in the matter still pending.
A person close to the development stated, “The stake dilution will be done through a block deal and will be completed shortly at a price band of Rs 1,215 to Rs 1,240 a share.”
According to the term sheet, the deal would value up to Rs 6,800 crores at the lower end of the price band. Currently, 28.8 percent stake in the bank is held by Kotak and his family members as against the RBI mandate of 26 percent.
The richest banker in Asia, Kotak, is the Managing Director of Kotak Mahindra Bank, which is the fourth largest private sector lender in the country.