Warburg shot in the arm for Kotak Bank

DALAL STREET SPIKES

The Kotak Mahindra Bank scrip witnessed good buying interest after the company announced that it has approved a decision to issue 33,00,000 equity shares on a preferential basis to sub accounts of Warburg Pincus, a registered FII.

This constitutes 2.75 per cent of the current paid-up capital of the bank. Kotak Mahindra Bank scrip surged to a high of Rs 258.80 in intra-day trades before closing at Rs 255.55, up 5.99 per cent over its previous close. More than 1.92 lakh shares were traded on the BSE on Monday.

The bank announced that the preferential issue, which has a lock-in period of one year, will be at a price of Rs 230 per share, amounting to Rs 759 million. This is the first investment by Warburg Pincus in India's banking sector.