New Delhi: Private lender Kotak Mahindra Bank on Monday announced that it will buy nearly 10% stake in KFin Technologies Private Limited for around 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 said in a notification to the exchanges.
Kotak mentioned that the indicative time for completion of the deal is by the end of October this year. The transaction is subject to customary closing conditions, it added.
The lender's stock hit an intraday high of Rs 2,037.15 post the announcement but gave up all gains later in the day to finish 0.24% lower at Rs 2,001.25 amid weak global cues. Kotak's market capitalisation or m-cap briefly hit the Rs 4 lakh crore-mark before settling nearly at Rs 3.97 lakh crore.
Dipak Gupta, Joint Managing Director, Kotak Mahindra Bank said, "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 said, "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 country's largest integrated solutions and services provider for investor and issuer services. It provides financial technology solutions across asset classes such as mutual funds (MFs), alternatives, ETFs, insurance and pensions.
According to its website, it services 25 out of 44 Indian mutual fund AMCs. It also serves over 300 AIF schemes launched by more than 100 fund managers.
KFin is majority owned by funds managed by global private equity investor General Atlantic.
In another set of development, Kotak told exchanges that its representatives will be speaking to investors at J.P. Morgan India Investor Summit 2021 through an audio/video conference call on Tuesday.
Last week, the lender had acquired the vehicle financing loan portfolio of Volkswagen Finance Private Limited (VWFPL). VWFPL is the Indian captive financing arm of Volkswagen Group.