Private lender Kotak Mahindra Bank on Monday announced that the bank has agreed to shop for around 9.98% stake in KFin Technologies Private Limited for a cash consideration of around ₹310 crore. Shares of Kotak Bank surged over 1% on the BSE in Monday’s early deals with its market capitalisation crossing ₹4 lakh crore.

“Kotak Mahindra Bank Limited has agreed to subscribe 1,67,25,100 Equity Shares in KFin Technologies Private Limited for a consideration of roughly ₹310 crore translating into an equity shareholding of 9.98% on September 19, 2021. The transaction is subject to customary closing conditions.,” the bank informed in an exchange filing.

KFin provides a comprehensive array of monetary technology solutions across a broad spectrum of asset classes spanning mutual funds, alternatives and pension. KFin also provides Registrar and Transfer Agency services to Mutual Funds, Alternative Investor Funds, Wealth Managers and Corporates and offers back-office operations and processing services, besides being a central recordkeeping agency under the National Pension System (NPS).

Based in India, KFin also has subsidiaries incorporated in Malaysia and Bahrain. KFin had a turnover ₹481 crore in FY21, ₹450 crore in FY20 and ₹162 crore in FY19.

The expected time of completion of the stake acquisition is predicted to be by the top of October 2021. Post investment, Kotak Mahindra Bank will hold 1,67,25,100 Equity Shares in KFin translating into 9.98% equity shareholding in KFin, the bank added.