Share Market:- Share for Profit in Nifty

Share Market:- Share for Profit in Nifty

Nifty Idea

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.