Uday Kotak sells Rs 6,944 crore worth shares of Kotak Mahindra Bank

Promoter and Managing Director Uday Suresh Kotak has sold Rs 6,944 crore worth of shares of Kotak Mahindra Bank, the country's fourth largest private sector lender, on June 2.

Kotak sold 5.6 crore equity shares (representing 2.92 percent of total paid-up equity) at Rs 1,240 per share, as per the bulk deals data available on the BSE on June 2.

The stake sale was to comply with a settlement agreement struck with the Reserve Bank of India (RBI) in January on promoter stake dilution, which brought the curtains down on an extended standoff between the regulator and the bank over reduction in promoter shareholding.

On January 30, Kotak Mahindra Bank had said RBI had agreed to its proposal to reduce promoter stake to 26 percent from the current 29.9 percent over the next six months. It also said promoter voting rights will be capped at 20 percent of the paid-up voting share capital until March 31 and will be further capped at 15 percent, effective April 1. Kotak Mahindra Bank had added that promoters will not purchase any further 'paid-up voting equity shares' of the bank till the promoter shareholding reaches 15 percent.

As per the shareholding pattern as of March 2020, promoter and promoter group shareholding was 29.92 percent including 29.63 percent stake held by Kotak.

Kotak Mahindra Bank share price closed at Rs 1,343.20 on the BSE, up 7.52 percent on June 2.

Among others, promoter EID Parry India sold 58,50,000 equity shares of Coromandel International at Rs 629.19 per share on the BSE. EID Parry held 60.47 percent shareholding in the company out of total promoter and promoter group stake of 61.63 percent in Coromandel.

However, BNP Paribas Arbitrage bought 3,57,000 equity shares of Just Dial at Rs 407.44 per share on the NSE and Abakkus Emerging Opportunities Fund - 1 acquired five lakh shares of ADF Foods at Rs 274 per share on the BSE.