Private lender Kotak Mahindra Bank on Monday announced that the bank has agreed to buy around a 9.98% stake in KFin Technologies Private Limited for a cash consideration of around ₹310 crores. Shares of Kotak Bank surged over 1% on the BSE in Monday's early deals with its market capitalization crossing ₹4 lakh crore.
"Kotak Mahindra Bank Limited has agreed to subscribe to 1,67,25,100 Equity Shares in KFin Technologies Private Limited for a consideration of approximately ₹310 crores translating into an equity shareholding of 9.98% on September 19, 2021. The transaction is subject to customary closing conditions.," the bank informed in an exchange filing.
KFin provides a comprehensive array of financial technology solutions across a broad spectrum of asset classes spanning mutual funds, alternatives and pension. KFin also provides Registrar and Transfer Agency services to Mutual Funds, Alternative Investor Funds, Wealth Managers and Corporates and offers back-office operations and data processing services, besides being a central recordkeeping agency under the National Pension System (NPS).
The expected time of completion of the stake acquisition is expected to be by the end of October 2021. Post investment, Kotak Mahindra Bank will hold 1,67,25,100 Equity Shares in KFin translating into 9.98% equity shareholding in KFin, the bank added.