UDAY KOTAK TRIMS STAKE IN KOTAK MAHINDRA BANK TO 19.70%
Uday Kotak, the founder and promoter of Kotak Mahindra Bank, has pared down his stake in the bank to 19.70% from about 30% following issuance of preference shares.
The stake dilution of the promoter is in line with RBI’s directive. The bank has “approved the allotment of 100,00,00,000 Perpetual Non-Cumulative Preference Shares to eligible investors at the issue price of ₹5 per PNCPS, aggregating to ₹500 crore pursuant to the issue,” Kotak Mahindra Bank said in a BSE filing.
Subsequent to this issue, the paid-up capital of the bank has increased from ₹953.16 crore to ₹1,453.16 crore and the promoter holding is 19.70% of the paid-up capital, it said.
Kotak’s holding in the bank prior to the preference share issuance was 29.74%.
The preference shares have been issued through private placement. The promoters’ position in terms of voting rights will remain the same as earlier as banking laws cap voting rights at 15%, irrespective of shareholding. RBI had earlier asked promoters of Kotak Mahindra Bank to bring down their stake to 20% by December 2018 and 15% by March 2020 in line with the guidelines for new bank licences.
NEW DELHI:
: Tata Steel Ltd on Friday moved the Supreme Court (SC) challenging the National Company Law Appellate Tribunal (NCLAT) order that allowed revision of bids for debt-laden Bhushan Power and Steel Ltd (BPSL).
A lawyer representing Tata Steel informed the court that the companyhassoughturgenthearing on the matter as lenders may take a decision on resolution plans. However, the three-judge panel headed by Chief Justice of India Dipak Misra refused urgent hearing of Tata Steel’s plea and scheduled the matter to be heard on August 10.
On Wednesday, NCLAT asked the three bidders for the debt-ridden Bhushan Power and Steel —Tata Steel, Liberty House and JSW Steel—to file revised resolution plans by August 6.
A two-judge NCLAT bench, headed by justice SJ Mukhopadhyay, directed the committee of creditors (CoC) to decide on the revised bids and keep it in a sealed cover. The bench said only the financial part of the bids can be changed.
The move came as a big blow for Tata Steel, which had been declared the highest qualified bidder, for the second time, by the CoC on Tuesday.
On July 20, NCLAT had directed the CoC for the company to consider resolution plans submitted by Tata Steel, Liberty House and JSW Steel. It had also directed the CoC to call all the three bidders, along with operational creditors and the suspended board of directors of BPSL, to the meeting.
JSW Steel has revised its offer from ₹11,000 crore to ₹18,000 crore, while Tata Steel’s offer stands at ₹17,000 crore and Liberty House’s at ₹18,600 crore.
UK-based Liberty House had alleged it was not informed about the meeting.
BPSL, which owes more than ₹48,500 crore to a consortium of lenders led by Punjab National Bank (PNB), is one of the 12 large companies identified by the Reserve Bank of India (RBI) for early insolvency resolution.
The resolution period for the company was to end on 23 June.
However, the appellate tribunal has said that the duration of the pending appeal be excluded from the 270-day resolution timeframe for completing a corporate insolvency process.
NEW DELHI