BharatPe co-founder, MD sends legal notice to Uday Kotak on Nykaa IPO matter

BharatPe's co-founder and MD Ashneer Grover and his wife Madhuri Grover sent a legal notice to Kotak Mahindra Bank's managing director and chief executive officer Uday Kotak and to some of his senior management, accusing the bank of failing to secure financing and allocation of shares in an IPO launched by beauty firm Nykaa.

Besides Kotak, the notice was also addressed to Oisharya Das, CEO of Kotak Wealth Management, Shanti Ekambaram, Kotak Mahindra Bank's Group President for Consumer Banking and KVS Manian, Corporate, Institutional and Investment Banking.

The notice has sought damages for the gains Grover and his wife would have made after subscribing to shares worth Rs 500 crore in the company besides Rs 1 lakh towards the cost of the legal notice.

"In the event of Kotak's failure to do so, Kotak would be liable to compensate our clients for the losses suffered on account of Kotak's breaches, i.e. the gains our client would have made through the Nykaa IPO, by submitting an application of Rs 500 crore in the HNI segment, less the cost of borrowing computed at 10 per cent for 7 days," the notice which is reviewed by IANS read.

"Kotak is called upon to compute this amount on the listing of Nykaa and promptly pay this sum to our clients within 24 hours of listing of Nykaa stocks. Kotak is also liable to pay the costs of this legal notice in the sum of Rs 1,00,000/- (Rupees One Lakh only). Kotak's failure to comply with its obligations would compel our clients to take the necessary action in law."

Reportedly, there has been no public statement from Grover till the filing of this report.

However, Kotak Mahindra Bank in a statement said: "This notice was received by us and was replied to appropriately at the time, including placing on record our objections to inappropriate language used by Mr. Grover."

"Appropriate legal action is being pursued. We would like to confirm that there is no breach or violation by the Kotak Group in any manner whatsoever."