Shares of Kotak Mahindra Bank emerged as the top gainer on the Nifty, up as much as 5%, after the apex bank and Uday Kotak led private sector bank settle promoter shareholding feud.
The gains came after the private banker decided to limit the promoters' voting rights to 15% from April 1, 2020. Further to the development, the bank said the apex bank has given its in-principle approval for lowering promoters' shareholding to 26% of the paid-up equity capital within six months from the final date of approval by the regulator.
Kotak Mahindra Bank in a regulatory filing said the bank has decided to withdraw the case filed in Bombay High Court after RBI denied its proposal for issuing perpetual non-convertible preference shares for complying with rules relating to promoter shareholding.
Last, shares of Kotak Mahindra Bank quoted higher by 4.66% at Rs. 1704.05 per share.