Kotak Mahindra Bank dropped 2.91% to Rs 1,314.25 at 10:35 IST on BSE after the Reserve Bank of India barred foreign investors from making further purchases after foreign holding in the bank hit threshold limit post merger with ING Vysya Bank.
The Reserve Bank of India made announcement after market hours yesterday, 21 April 2015.
Meanwhile, the BSE Sensex was up 72.39 points, or 0.26%, to 27,748.43.
On BSE, so far 24,874 shares were traded in the counter, compared with an average volume of 1.13 lakh shares in the past one quarter.
The stock hit a high of Rs 1,365.50 and a low of Rs 1,312.60 so far during the day. The stock had hit a record high of Rs 1,473.75 on 15 April 2015. The stock had hit a 52-week low of Rs 785 on 5 May 2014.
The stock had outperformed the market over the past one month till 21 April 2015, rising 1.07% compared with 2.07% fall in the Sensex. The scrip had also outperformed the market in past one quarter, declining 2.56% as against Sensex's 4.2% decline.
The large-cap private bank has an equity capital of Rs 386.18 crore. Face value per share is Rs 5.
The Reserve Bank of India has yesterday, 21 April 2015, stated that post allotment of Kotak Mahindra Bank's shares to ING Vysya Bank pursuant to amalgamation of Kotak with ING Vysya, the aggregate foreign shareholding in Kotak Mahindra Bank has reached the threshold limit. Therefore, RBI has barred further purchases of shares of Kotak Mahindra Bank through stock exchanges in India on behalf of non-resident Indian (NRI)/persons of Indian origin (PIO)/foreign institutional investors (FII)/registered foreign portfolio investor (RFPIs) and through Global Depository Receipt (GDR)/American Depository Receipt (ADR)/foreign direct investment (FDI).
The Reserve Bank of India has yesterday, 21 April 2015, sanctioned the scheme of Amalgamation of ING Vysya Bank with Kotak Mahindra Bank and made it effective from 1 April 2015. Pursuant to the scheme of amalgamation, Kotak Mahindra Bank has on 21 April 2015 allotted the shares to the shareholders of ING Vysya Bank.
Kotak Mahindra Bank has alloted shares in the ratio of 725 shares of Kotak for every 1,000 shares of ING Vysya after amalgamation of Kotak with ING Vysya.
Kotak Mahindra Bank's consolidated net profit rose 21.2% to Rs 716.61 crore on 20.3% rise in total income to Rs 5323.46 crore in Q3 December 2014 over Q3 December 2013.
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