Uday Kotak, the founder of Kotak Mahindra Bank, will sell a 2.8 per cent stake in the private sector lender for at least Rs 6,800 crore.

The latest move, which comes after the bank’s qualified institutional placement (QIP), will lower the promoter stake in line with an agreement with the Reserve Bank of India (RBI).

In February, the banking regulator had given its final approval to Kotak Mahindra Bank’s proposal to lower promoters’ stake. The promoters are required to bring down their holdings to 26 per cent of their paid-up voting equity share capital by August 17.

Uday Kotak had dragged the RBI to the Bombay high court in December 2018.

“The stake dilution will be done through a block deal and will be completed at a price band of Rs 1,215 to Rs 1,240 per share,” sources close to the lender said.

According to the term sheet, the deal would be worth Rs 6,800 crore at the lower end of the price band. Kotak will be selling 5.6 crore shares of the bank.

Shares of the bank on Monday settled with gains of over 2 per cent on the bourses.

On the BSE, the scrip ended at Rs 1,249.25 — a gain of Rs 25.55. At the lower end of the price band, the proposed sale marks a discount of almost 3 per cent to the closing price.

Currently, Kotak and his family holds 28.8 per cent stake in the bank as against the RBI mandate of 26 per cent.

The bank had recently raised Rs 7,442.5 crore through the QIP offering. It had issued 6.5 crore shares at a price of Rs 1,145 per share to the buyers to raise the money which will strengthen its capital reserves. In May Kotak had said that there is a chance of consolidation in the financial services sector and when an opportunity beckons, the bank wants to be ready with the money.

He had then also said that the bank is working on various fronts to get the promoter shareholding to the desired level mandated by the RBI.