Kotak Mahindra Bank rose 0.80% to Rs 866.80 at 14:34 IST on BSE after the bank's promoter group sold a 3.24% stake in the bank to comply with the central bank's guidelines on equity holding in local banks.
The announcement was made during market hours today, 30 May 2014.
Meanwhile, the BSE Sensex was down 21.41 points, or 0.09%, to 24,212.74.
On BSE, so far 2.50 crore shares were traded in the counter, compared with an average volume of 70,360 shares in the past one quarter.
The stock hit a high of Rs 880 and a low of Rs 843.90 so far during the day. The stock hit a 52-week high of Rs 950 on 16 May 2014. The stock hit a 52-week low of Rs 588 on 28 August 2013.
The stock had underperformed the market over the past one month till 29 May 2014, rising 6.47% compared with 7.87% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 25.87% as against Sensex's 14.74% rise.
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The large-cap private sector bank has an equity capital of Rs 385.18 crore. Face value per share is Rs 5.
Kotak Mahindra Bank said that Kotak Trustee Company, a promoter group entity of Kotak Mahindra Bank, has today, 30 May 2014, sold 2.49 crore shares, or 3.24% equity, of the bank. After the sale of the shares, the shareholding of promoters in the bank has declined to 40.33%. The sale of shares by the promoters was undertaken pursuant to Reserve Bank of India's (RBI) requirement to reduce promoter shareholding in the bank as communicated on 26 May 2014, Kotak Mahindra Bank said.
Earlier this month, the RBI had ordered Kotak Mahindra Bank to bring down its promoter shareholding to 40% by 30 September 2014 per estimates provided by the bank. Kotak Mahindra Bank will then have until 31 December 2016 to cut its promoter shareholding to 30%.
As on 31 March 2014, promoters held 43.58% stake in Kotak Mahindra Bank. Among the promoter group, Uday Suresh Kotak held the largest stake of 39.76%.
Kotak Mahindra Bank's net profit fell 6.65% to Rs 407.18 crore on 0.74% decline in total income to Rs 2552.96 crore in Q4 March 2014 over Q4 March 2013.
Kotak Mahindra group is one of India's leading financial services conglomerates.
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