Kotak Mahindra Bank on September 20 said it’ll acquire an almost 10 percent stake in KFin Technologies after investing Rs 310 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 Rs. 310 crore translating into an equity shareholding of 9.98 percent on September 19, 2021,” the private lender said during a BSE filing.
The transaction is subject to regulatory approvals.
KFin is India’s largest integrated solutions and services provider for investor and issuer services providing financial technology solutions across asset classes like mutual funds, alternatives, ETFs, insurance and pensions.
KFin services 25 of 44 Indian open-end fund AMCs, consistent with the company’s website. It serves over 300 AIF schemes launched by quite 100 fund managers
KFin is additionally one among the 2 players providing central record-keeping services for the National Pension System.
Shares of Kotak Mahindra Bank had risen quite 1 percent after the announcement was made.
“As a platform of choice for asset managers, investors and corporates, we believe KFin is well-positioned to continue growing its marketposition. At Kotak Mahindra Bank, this investment is in line with our stated strategy of creating minority investments in businesses which are professionally managed and have deep client entrenchment. We are excited about the longer term 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 director , Kotak Mahindra Bank said during 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 an equivalent . With Kotak Mahindra Bank’s support, along side the continued support of General Atlantic, an existing shareholder of KFin, we shall be able toachieve greater heights in our technology, business processes, leadership depth and governance.”