Kotak Mahindra to pick up 9.98% stake in KFin technologies for Rs 310 cr

Kotak Mahindra Bank on Monday said it will pick up a 9.98 per cent stake in KFin Technologies Pvt Ltd. for a cash consideration of around Rs 310 crore. The transaction is subject to customary closing conditions.
 
As part of the transaction, Kotak Mahindra Bank will subscribe to 1,67,25,100 equity shares in KFin Technologies, translating into 9.98 per cent equity shareholding in the latter.
 
The stake acquisition is expected to conclude by the end of October 2021.

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Following the announcement, shares of the private sector lender hit an intraday high of Rs 2037.15 on BSE. 
 
At 12:34 hours, the shares were trading 0.17 per cent lower at Rs 2,002.55. The bank's shares jumped over 1 per cent on the BSE in early trade with its market capitalisation crossing Rs 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 Rs 310 crore translating into an equity shareholding of 9.98 per cent on September 19, 2021. The transaction is subject to customary closing conditions," the bank said in a regulatory filing.

Incorporated in 2017, KFin offers a wide array of financial technology solutions across a broad spectrum of asset classes spanning mutual funds, alternatives, insurance, and pension. 

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It had a turnover of Rs 481 crore in 2020-21. KFin also has subsidiaries incorporated in Bahrain and Malaysia.
 
"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," said Dipak Gupta, Joint Managing Director, Kotak Mahindra Bank.

MV 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."