Kotak Mahindra Bank buys stake in KFin Technologies, market cap exceeds 4 lakh crore
Private lender Kotak Mahindra Bank announced on Monday that the bank had agreed to purchase an approximate 9.98% stake in KFin Technologies Private Limited for a cash consideration of approximately ??310 crores. Kotak Bank shares jumped more than 1% on BSE in Monday’s first deals with its market cap 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 crore translating into a 9.98% equity stake on September 19, 2021. The transaction is subject to customary closing conditions, “the bank said in an exchange brief.
KFin offers a full range of financial technology solutions across a wide range of asset classes covering mutual funds, alternatives and pensions. KFin also provides registrar and transfer agency services to mutual funds, alternative investor funds, wealth managers and corporations and offers back office operations and data processing services, in more than being a central record keeping agency under the National Pension System (NPS).
Based in India, KFin also has subsidiaries incorporated in Malaysia and Bahrain. KFin achieved a turnover ??481 crores in FY21, ??450 crore in FY20 and ??162 crores to FY19.
The expected time for the completion of the acquisition of the stake is expected to be by the end of October 2021. After the investment, Kotak Mahindra Bank will hold 1,67 25,100 KFin shares, resulting in a stake of 9.98% in KFin, the bank added.
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