Kotak Mahindra Bank up 5% after RBI accepts promotor voting rights cap at 15%

Kotak Mahindra Bank shares are up 5% today after the Reserve Bank of India (RBI) accepted paid up voting equity share capital (PUVESC) to be capped at 20% till March 2020.  

The RBI also gave an in-principle approval for the following:

• Promoters rights in Bank to be capped to 15% of PUVESC from April 1, 2020
• Promoters shareholding in the Bank to be reduced to 26% of PUVESC of bank within 6 months from date of final approval by RBI.
• Thereafter, promoters will not purchase any further "paid up voting equity shares" till the promoter shareholding reaches 15% of PUVESC of bank or  higher as permitted by the RBI.

Stock View:

Kotak Mahindra Bank Ltd is currently trading at Rs1,688.60 up by Rs60.5 or 3.72% from its previous closing of Rs1,628.10 on the BSE.

The scrip opened at Rs1,712 and has touched a high and low of Rs1,720 and Rs1,682.05 respectively. So far 49,05,445 (NSE+BSE) shares were traded on the counter.

The current market cap of the company is Rs3,11,217.68cr.

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