New Delhi: Private lender Kotak Mahindra Bank on Monday introduced that it’ll purchase practically 10% stake in KFin Technologies Private Limited for round Rs 310 crore. “Kotak has agreed to subscribe to 1,67,25,100 equity shares in KFin Tech for a consideration of approximately Rs 310 crore translating into an equity shareholding of 9.98% on September 19, 2021,” the lender stated in a notification to the exchanges.
Kotak talked about that the indicative time for completion of the deal is by the top of October this yr. The transaction is topic to customary closing situations, it added.
The lender’s inventory hit an intraday excessive of Rs 2,037.15 submit the announcement however gave up all positive aspects later within the day to complete 0.24% decrease at Rs 2,001.25 amid weak world cues. Kotak’s market capitalisation or m-cap briefly hit the Rs 4 lakh crore-mark earlier than settling practically at Rs 3.97 lakh crore.
Dipak Gupta, Joint Managing Director, Kotak Mahindra Bank stated, “We are excited about the future growth prospects of the business and believe that an investment in KFin, with its significant franchise, will create long-term value for our stakeholders.”
MV Nair, Chairman, KFin Technologies stated, “KFin is uniquely positioned to leverage its decades of deep capital markets expertise to deliver a differentiated value proposition to the financial markets in India and abroad. Kotak Mahindra Bank’s investment is testimony to the same.”
KFin Tech is the nation’s largest built-in options and providers supplier for investor and issuer providers. It offers monetary know-how options throughout asset lessons resembling mutual funds (MFs), options, ETFs, insurance coverage and pensions.
According to its web site, it providers 25 out of 44 Indian mutual fund AMCs. It additionally serves over 300 AIF schemes launched by greater than 100 fund managers.
KFin is majority owned by funds managed by world non-public fairness investor General Atlantic.
In one other set of improvement, Kotak instructed exchanges that its representatives shall be chatting with buyers at J.P. Morgan India Investor Summit 2021 by means of an audio/video convention name on Tuesday.
Last week, the lender had acquired the car financing mortgage portfolio of Volkswagen Finance Private Limited (VWFPL). VWFPL is the Indian captive financing arm of Volkswagen Group.