Kotak Mahindra Bank on Saturday, 21 March, said that its wholly-owned subsidiary Kotak Mahindra Capital Company Limited (KMCC) has entered into definitive agreements to sell some of its stake Infina Finance Private Limited for an amount of ₹1,293 crore.
According to an exchange filing shared with NSE and BSE on Saturday, KMCC will sell 30.99% of its shareholding at Infinia Finance, an associate company of the Kotak Mahindra Bank, for an aggregate consideration of ₹12,93,91,10,882.
The agreements signed on 21 March show that KMCC will divest its 30.99% stake in Infinia through multiple transactions.
Here are the details of the agreement.
Kotak Mahindra Bank stake sale details
The stake transfer will largely consist of three transactions — with parts of KMCC’s shares going to the trust fund of Rakesh Jhunjhunwala, and being transferred to two companies. Under the share-selling agreement, Kotak Mahindra Bank’s KMCC will —
a) transfer as many as 2,17,899 equity shares, representing 9.90% of the share capital of Infina, to Derive Trading and Resorts Private Limited and Bright Star Investments Private Limited, for an aggregate consideration of ₹413,35,00,450.20;
b) KMCC will also transfer 2,66,321 equity shares, representing 12.10% of the share capital of Infina, to the Estate of late investor Rakesh Jhunjhunwala through its Trusts, for an aggregate consideration of ₹505,20,56,105.80; and
c) The stake sale will also see the transfer of 1,97,870 equity shares, representing 8.99% of the share capital of Infina, to KF Trust (“KF Trust”), an existing shareholder of Infina, for an aggregate consideration of ₹375,35,54,326.
The bank further said in its exchange filing that the said transactions with Derive Trading, Bright Star Investments, and the Jhunjhunwala trusts are not part of related party transactions. The transaction with KF Trust, whose beneficiaries are part of a promoter group, qualifies as a related party transaction, the bank said. However, that sale is being conducted at an ‘arm’s length’.
These transactions are subject to completion of customary conditions precedent and would, upon completion, result in Infina ceasing to be an associate company of Kotak Mahindra Bank.
Following the sale, KMCC’s stake in Infinia will be reduced to 19%.
The transactions, which were initiated on 21 March, are expected to be completed on or before 31 March, Kotak Mahindra Bank said.
Financial details of Infinia Finance
Kotak Mahindra Bank also shared the relevant financial information about Infinia up to 31 March, 2025, in its filing. The details are shared below —
- Turnover: ₹532.66 crore
- Turnover as percentage of Kotak Mahindra Bank’s Consolidated Total Income: 0.50%
- Net worth: ₹2,727.99 crore
- Net worth as percentage of Kotak Mahindra Bank’s Consolidated Total Net worth: 1.73%
- Paid up equity capital: ₹2.20 crore.
Kotak Mahindra Bank stock price
Shares of Kotak Mahindra Bank will be watched closely following the key stake sale on Monday. During the end of Friday’s session, Kotak Mahindra Bank stock price remained flat at ₹366.95 per share, in comparison to the previous close of ₹367.95 per share.
Kotak Mahindra Bank shares opened higher at ₹371 on the BSE on Friday and touched an intraday high of ₹372.60, before shedding its gains to close flat at ₹367.95 apiece.
- The stake sale involves multiple parties and significant financial amounts, indicating strategic repositioning.
- Post-transaction, Kotak Mahindra Bank’s stake in Infinia will decrease to 19%, impacting its influence in the company.
- Investors should monitor the market response and financial implications surrounding the divestment.
