Kotak Mahindra Bank, on Monday, announced that it will acquire an almost 10 percent stake in KFin Technologies after pouring in Rs 310 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 Rs. 310 crore translating into an equity shareholding of 9.98 percent on September 19, 2021,” said the private bank said in a BSE filing.
The transaction is subject to approval by the regulatory body.
KFin is India’s biggest integrated investor and services provider, and its catalogue includes financial technology solutions across asset classes such as mutual funds, alternatives, ETFs, insurance, and pensions.
The company has over 180 branches across India. Besides India, it is present in 13 countries around the globe — Canada, USA, Oman, Malaysia, United Kingdom, UAE, Maldives, Singapore, Australia, Hong Kong, Philippines, and Bahrain. It has over 100 million investor base and in a day carries out over 2,5 crore transactions
As per the company website, KFin services 25 of 44 Indian Mutual Fund AMCs.
KFin also provides the central record-keeping services for the National Pension System.
“As a platform of choice for asset managers, investors and corporates, we believe KFin is well-positioned to continue growing its market position. At Kotak Mahindra Bank, this investment is in line with our stated strategy of making minority investments in businesses that are professionally managed and have deep client entrenchment. 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,” Dipak Gupta, Joint Managing Director, Kotak Mahindra Bank said in a statement.
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. With Kotak Mahindra Bank’s support, along with the continued support of General Atlantic, an existing shareholder of KFin, we shall be able to achieve greater heights in our technology, business processes, leadership depth and governance.”
The shares of Kotak Mahindra Bank opened at an intraday day price of Rs 2013.50, up by Rs 12.25 apiece. At 1200 hours, the stock was trading at 2012.20, almost 1% up from the previous day close of Rs 2,001.25.