Financial services firm Kotak Mahindra Bank agreed yesterday to pay Rs 3.1bn ($42m) to acquire a 9.98% stake in India-based investment technology provider KFin Technologies.
The transaction is conditional on regulatory approvals, and is set to close by the end of next month. The news caused Kotak Mahindra Bank’s shares to rise to their highest level in the past 12 months.
Also known as KFintech, KFin has built a big data-powered software platform that helps investors including banks, public sector enterprises and mutual funds manage their transactions. It has a team of more than 5,500 people across 220 branches in its home country.
Dipak Gupta, joint managing director of Kotak Mahindra Bank, said: “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.”
