Private lender Kotak Mahindra Bank Limited (KMBL) today announced that it has agreed to acquire a 9.9% stake in KFin Technologies, a leading investor and issuer servicing platform, for a cash consideration of Rs 310 crore.
Dipak Gupta, Joint Managing Director at Kotak Mahindra Bank said in a press release, “this investment is in line with our stated strategy of making minority investments in businesses which are professionally managed and have deep client entrenchment.”
He said the company believes KFin is well-positioned to continue growing its market position, and that investment in KFin, with its significant franchise, will create long-term value for KMBL’s stakeholders.
The deal, however, is a subject to necessary approvals.
KFin provides a wide array of financial technology solutions across a broad spectrum of asset classes spanning mutual funds, alternatives, insurance and pension. It serves 25 out of the 44 Indian Mutual Fund AMCs, which have over $148 billion in AUM1 and 35% market share in equity AUM1 (up from 27% in March 2019).
Commenting on the acquisition, M.V. Nair, Chairman at 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 the same.
“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,” he added.