Kotak Mahindra Capital Company Ltd (KMCC), a wholly owned subsidiary of Kotak Mahindra Bank Ltd, is divesting a 30.99% stake in Infina Finance Pvt Ltd for ₹1,294 crore, as it looks to pare non-core holdings and free up capital.
Stake sale details
The transaction, disclosed in a regulatory filing, involves multiple buyers. KMCC will sell a 9.90% stake to Derive Trading and Resorts Pvt Ltd and Bright Star Investments Pvt Ltd for a combined ₹413 crore.
A further 12.10% will be transferred to trusts of the estate of Rakesh Jhunjhunwala for ₹505 crore, while 8.99% will be sold to KF Trust for ₹375 crore.
Definitive Agreements
KMCC has executed definitive agreements for the stake sale, which is expected to be completed by March 31, 2026. Following the transaction, KMCC’s holding in Infina will fall to 19%, resulting in Infina ceasing to be an associate of the bank.
Related party transactions
Infina is currently classified as an associate entity of Kotak Mahindra Bank. KF Trust, an existing shareholder, has beneficiaries from the bank’s promoter group, though the transaction has been conducted at arm’s length. The trust itself does not hold shares in the bank.
KMCC operates as a full-service investment bank, offering equity and debt capital market solutions, M&A advisory, private equity advisory, restructuring, structured finance, and infrastructure advisory services.