Mumbai: Kotak Mahindra Bank shares fell over 3% on Monday after the Bombay high Court refused to grant stay on 31 December deadline given by the Reserve Bank of India for promoter stake dilution. The next hearing will be on 17 January, Bloomberg reported. In intraday, Kotak Mahindra Bank shares declined as much as 3.6% to hit a low of 1,209.30 apiece. The Kotak Bank stock closed at 1,223.90 per share, down 2.50% from its previous close, while the Sensex rose 0.85% to 36,270.07 points.

Kotak Mahindra Bank had on 11 December informed the stock exchanges that it has moved the Bombay high court against RBI after its promoter Uday Kotak was barred from reducing his stake in the bank through a preference share sale.

The central bank had mandated the private sector lender to trim promoter shareholding to 20% of its paid-up capital by 31 December 2018, and to 15% before 31 March 2020.

On 2 August, Kotak Mahindra Bank completed an issue of perpetual non-convertible preference shares (PNCPS), increasing the bank’s paid-up capital from 953 crore to 1,453 crore, thereby bringing down the promoter’s holding from 30.3% to 19.7%. However, the bank informed the stock exchanges on 14 August that the method did not meet RBI’s requirements.

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