Share Market:- Share for Profit in Nifty
Share for Profit in Nifty:- We recommend a Buy on Kotak Mahindra Bank with a Target Price of Rs. 1,280, an upside of 9% from CMP of Rs. 1,165 and Stop Loss Rs. 1,110.
Kotak Mahindra Bank is set to raise equity capital through QIP route which could be 5-7 crore shares.
The Promoter stake at 29% has to be brought down to 26% before September 2020.
The stake sale will not only help the bank’s founder and CEO Uday Kotak lower his stake to 26% to comply with the RBI norms but also augment the bank’s capital adequacy.
The bank’s capital adequacy ratio is at 17.9% at present. The stake sale will result in further availability of capital.