Kotak Mahindra Bank Ltd.

Kotak Mahindra Bank (KMBL) has accepted an offer from Heliconia, an affiliate of Government of Singapore Investment Corporation (GIC), to subscribe to a preferential issue of two crore equity shares of KMBL, amounting to approximately 2.6% shareholding in the bank (as of March 31, 2013) on a post-issue basis. The proposed investment of Rs 1,296 crore will be at a price of Rs 648 per share. The preferential equity issue is subject to shareholder and other necessary regulatory approvals.

This transaction will augment the Tier I capital of the bank for pursuit of growth opportunities. It will also be a step towards dilution of promoter stake in the bank. Kotak Investment Banking acted as the exclusive financial advisor to the transaction.

The consolidated net-worth of Kotak Group as on December 31, 2012, stood at Rs 14,568 crore and the Capital Adequacy ratio for the bank (Standalone) stood at 15.6% with Tier I at 14.2%.