The board has approved a proposal to issue 33 lakh equity shares at Rs 230 per share to Warburg Pincus on a preferential basis aggregating Rs 75.9 crore, Kotak Mahindra Bank said on Monday. The equity shares issued on preferential basis would have a one-year lock-in period, it said.
"Raising capital at this stage is part of our plan to fund the bank's expansion strategy. Having a reputed investor like Warburg Pincus on board underlines the confidence of long term investors in Kotak Mahindra," the bank's executive vice-chairman and managing director Uday Kotak said.
The board also approved, subject to consent of shareholders and other necessary approvals, increase in ceiling for investment by FIIs to 30 per cent from 24 per cent.
The increase would be effective from a date to be determined by the board. The bank plans to increase its branch network to 100 branches across 30-40 cities by 2007-08.