Kotak Bank to buy nearly 10% stake in KFin tech

Kotak Mahindra Bank announced that it will buy nearly 10% stake in KFin Technologies Pvt Ltd. for around ₹310cr. Kotak has agreed to subscribe to 1,67,25,100 equity shares in KFin tech for a consideration of approx. ₹310cr translating into an equity shareholding of 9.98% in September.

Kotak mention the indicative time for completion of the deal is by the end of October month. The Transaction is subject to customary closing conditions.

The lender’s stock hit an intraday high of ₹2037.15 post the announcement but gave up all gains later in the day to end 0.24% lower at ₹2001.24 amid weak worldwide cues. Kotak’s market capitalization hit the ₹4 lakh crore mark before settling nearly at ₹3.97 lakh crore.

Dipak Gupta, Joint Managing Director, Kotak Bank said, “We are excited about the future growth prospects of all business and believe that an investment in KFin, with its significant franchise, will create value for our stakeholders”.

KFin Tech is the nation’s largest integrated solutions and service provider for investor issuer services.