Kotak Mahindra Bank on Monday said it has agreed to make an equity investment of 9.98 per cent stake in KFin Technologies.

As part of the transaction, the private sector lender will subscribe to 1,67,25,100 equity shares in KFin Technologies for about Rs 310 crore.

“Kotak Mahindra Bank shall acquire, subject to necessary approvals, about 9.9 per cent stake in Kfin by investing about Rs 310 crore as primary infusion in the company,” said a statement.

 

Incorporated in 2017, KFin provides a wide array of financial technology solutions across a broad spectrum of asset classes spanning mutual funds, alternatives, insurance, and pension. It had a turnover of Rs 481 crore in 2020-21.

“At Kotak Mahindra Bank, this investment is in line with our stated strategy of making minority investments in businesses which 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,” said Dipak Gupta, Joint Managing Director, Kotak Mahindra Bank.

 

The acquisition is likely to be completed by end of October 2021, Kotak Mahindra Bank said in a stock exchange filing.

M.V. Nair, Chairman, KFin Technologies said, “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.”

KFin is majority owned by funds managed by General Atlantic.

Published on September 20, 2021