Investors on a buying spree for Kotak Mahindra Bank stock ahead of QIP issue

Investors seem to have gone on a buying spree in the market for the Kotak Mahindra Bank stock. As a result, Kotak Mahindra Bank stock is the top gainer and has touched a fresh 52-week high of Rs 980.50 on Monday. The stock is also trading above the crucial volume weighted average price of Rs 970.66 and has attracted the traded volume of 13,95,041 shares and traded value of Rs 135.41 crore.

In the last seven trading sessions, the stock has witnessed more than 60% of deliverable quantity as compared to the traded quantity, which may signal that the investors are very bullish on the stock.

As reported by a leading business daily, the bank’s board of directors have recently approved a qualified institutional placements (QIP) issue at a price per share of Rs 913.24 to raise the capital of about Rs 5600 Cr. Also, with the bank’s new 811 service, it has set an ambitious target to double the total customers in next 18-24 months. Investors are seen to cheer the Kotak Mahindra Bank’s ambitious target and feel that the bank is likely to achieve this target.

The banking stocks traded mostly in positive territory in the Monday’s trading session. Meanwhile, the Bank Nifty index closed higher by 0.66% at 22,821 level. ICICI Bank and Kotak Mahindra Bank contributed the most to the index gains.