New Delhi, June 1 : Uday Kotak is selling 2.83 per cent equity stake in Kotak Mahindra Bank, through a block deal, for around $900 million to meet the criteria set by the RBI to reduce promoter shareholding to 26 per cent in the bank. Kotak is the promoter of the bank and Managing Director. This will be a 100 per cent secondary placement through an accelerated book-build offering of equity shares. The block deal will take place on June 2, Tuesday. The placement agents are Kotak Securities, Morgan Stanley and Goldman Sachs. The deal size will be up to $900-918 million or Rs 68-69,440 crore assuming deal size of 56 million equity shares or up to 2.83 per cent of total equity shares outstanding as of May 31, 2020. Uday Kotak, as the promoter, is selling the stake. The pre-holding of the promoter group is 28.93 per cent which will be reduced to 26.10 per cent post the block deal. The deal objective of the sale of equity shares by Uday Suresh Kotak is to assist the Bank to progress towards compliance with Reserve Bank of India's requirement to reduce promoters' shareholding in the Bank to 26 percent of its paid up voting equity share capital by August 17, 2020. The floor price is Rs 1,215-1240 per equity share. The discount range will be 0.7 per cent discount (at top end of offer price range) and 2.7 per cent discount (at floor price) to the close price of Rs 1,248.40 as on June 1 on the National Stock Exchange of India. The discount range will be 1.5 per cent discount (at top end of offer price range) and 3.5 per cent discount (at Floor Price) to the VWAP price of Rs 1,258.48 as on June 1, 2020 on the National Stock Exchange of India. The lock up stipulation is that the seller will not sell equity shares of the Bank for 60 days from May 29, subject to such restriction not being applicable on sale of equity shares of the bank by one or more members of the promoter group of the bank that progress towards the RBI's requirement to reduce the current promoter shareholding in the bank to 26 per cent of the paid-up voting equity share capital of the company. /IANS