Kotak Mahindra Bank's securities business subsidiary, Kotak Securities will acquire a nearly 10 per cent stake in financial technology company Kredent InfoEdge (KIPL) for Rs 10 crore. Under the terms of the deal, Kotak Securities will acquire 100 equity shares of KIPL at a price of Rs 151.61 per share and 6,59,436 cumulative compulsorily convertible preference shares (CCCPS) at Rs 151.61 each. The deal is expected to be completed by the end of July 2021.
"Kotak Securities, a subsidiary of Kotak Mahindra Bank, has entered into an agreement with Kredent InfoEdge (KIPL) on July 6, 2021 for the investment of Rs 10 crore for a 9.96 per cent in the total share capital of KIPL," Kotak Mahindra Bank said in a filing to the stock exchanges.
CCCPS are cumulative compulsorily convertible preference shares that are convertible into equity shares anytime within 18 months. After 18 months, CCCPS will be automatically converted into equity shares at the prevaling conversion rates.
Kotak Securities will explore providing e-learning and digital value-added services to its customers, Kotak Mahindra added.
KIPL is a financial technology company that is focused on training people through learning and analytics platforms. It has three brands - eLearnMarkets (financial education platform), StockEdge (data analytics platform for stock markets) and StockEdge Club (social marketplace platform for investors and traders). It had a turnover of Rs 14.1 crore (Rs 141 million) in the financial year 2020-21.
At 12:30 pm, Kotak Mahindra Bank shares were trading flat at Rs 1,755 in a subdued market.