Kotak Mahindra Bank Arm to Sell Stake in Infina Finance for ₹12,939 Crore
Mumbai:
Kotak Mahindra Bank on Saturday announced that its wholly owned subsidiary, Kotak Mahindra Capital Company Limited (KMCC), has entered into definitive agreements to divest a part of its stake in Infina Finance Private Limited for a total consideration of ₹12,939 crore.
The transaction, disclosed under SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, involves the sale of multiple tranches of equity shares in Infina, an associate company of the bank.
Transaction Details
KMCC will divest its stake in Infina through three separate transactions:
- 9.90% stake (2,17,899 shares) to Derive Trading and Resorts Pvt. Ltd. and Bright Star Investments Pvt. Ltd. for ₹413.35 crore
- 12.10% stake (2,66,321 shares) to trusts representing the estate of Rakesh Jhunjhunwala for ₹505.20 crore
- 8.99% stake (1,97,870 shares) to KF Trust for ₹375.35 crore
The aggregate stake sale totals approximately 30.99% in Infina.
Change in Ownership Status
Upon completion of the transactions, KMCC’s shareholding in Infina will reduce to 19%, resulting in Infina ceasing to be an associate company of the bank.
The deal is expected to be completed on or before March 31, 2026, subject to customary conditions.
Regulatory and Related Party Aspects
The bank clarified that transactions with Derive Trading, Bright Star Investments, and the Jhunjhunwala trusts do not qualify as related-party transactions.
However, the sale to KF Trust—whose beneficiaries are part of the promoter group—has been classified as a related-party transaction, though conducted at arm’s length.
Financial Snapshot of Infina
For the financial year ended March 31, 2025, Infina reported:
- Turnover of ₹532.66 crore
- Net worth of ₹2,727.99 crore
Despite being an associate, Infina contributed a relatively small share to the bank’s consolidated financials, accounting for about 0.50% of total income and 1.73% of net worth.
Strategic Implications
The divestment is expected to streamline the bank’s investment structure while unlocking value from its stake in Infina. It also reflects ongoing portfolio optimization within the group.