Kotak Mahindra Bank shares surge on capital raising plans

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NEW DELHI: Shares of Kotak Mahindra Bank were trading higher in early trade on Tuesday after the private sector lender said the board of directors has scheduled a meeting on Thursday to consider raising of equity capital by the bank.

The scrip was trading 0.50 per cent up at Rs 875.10 around 9.20 am (IST). Shares of the company opened at Rs 879 and touched a high and low of Rs 880 and Rs 873.50, respectively, in trade so far.

In a regulatory filing, Kotak Mahindra Bank said, “Board of directors has scheduled a meeting on 30 March 2017 to consider raising of equity capital by the bank through rights issue, private placement, follow-on public offering (FPO), Qualified Institutions Placement (QIP), Global Depository Receipts (GDR), American Depository Receipts (ADR) or through any other permissible mode or a combination thereof, as may be considered appropriate.”

The announcement was made after market hours on Monday.

For the quarter ended December 2016, the bank reported a net profit of Rs 1266.59 crore, up 34 per cent, against Rs 945.16 crore in the corresponding quarter last year. Net sales of the lender advanced 10.11 per cent year-on-year to Rs 5,666.07 crore for the quarter under review.