New Delhi, March 23 -- Kotak Mahindra Capital will sell a 31% stake in its NBFC arm, Infina Finance, to multiple entities for Rs 1,293 crore ($137 million).
Kotak Mahindra Capital is a wholly-owned subsidiary of Kotak Mahindra Bank, while Infina Finance is currently an associate of the bank.
As part of the agreement, Kotak Mahindra Capital will transfer 2.2 lakh shares, or a 9.9% stake in Infina, to Derive Trading and Resorts Pvt Ltd and Bright Star Investments Pvt Ltd for Rs 413 crore, the company said in an exchange filing on Saturday.
Further, it will transfer 2.6 lakh equity shares, or a 12.1% stake, to trusts representing the estate of ace investor Rakesh Jhunjhunwala for Rs 505 crore. Lastly, it will transfer nearly 2 lakh shares, or an 8.99% stake, to KF Trust, an existing shareholder, for around Rs 375 crore.
The transactions are subject to customary conditions precedent and, upon completion, will result in Infina ceasing to be an associate of the bank, the filing said. Post-transaction, Kotak Mahindra Capital's stake in Infina will reduce to 19%.
Infina Finance offers loans against property and securities, corporate real estate financing, and employee stock option (ESOP) financing.
The company's net profit fell to Rs 143 crore in the first nine months of FY26 from Rs 147 crore a year ago, due to a rise in expenses. Total expenses rose to Rs 263 crore in April-December from around Rs 200 crore a year ago. Its net worth stood at about Rs 2,871 crore as of December 31.
Kotak Mahindra Capital provides advisory services, equity capital markets solutions, and financial sponsor coverage. Its net profit fell 7% year-on-year to Rs 246 crore in April-December.
Published by HT Digital Content Services with permission from VC Circle.