Kotak Mahindra Bank to acquire 9.9% stake in KFin Technologies; plans to pump in Rs 310 crore
KFin serves 25 out of the 44 Indian Mutual Fund AMCs, which have over USD 148 billion in AUM and 35 per cent market share in equity AUM (up from 27 per cent in March 2019), the exchange filing said.
Kotak Mahindra Bank Limited (KMBL) will make an equity investment in KFin Technologies, the company today announced in its filing to exchanges. KMBL will acquire a 9.9 per cent stake in KFin by investing Rs 310 crore as primary infusion in the company, the company said. The transaction will be subject to necessary regulatory approvals,.
KFin Technologies is an investor and issuer servicing platform. It provides a wide array of financial technology solutions across a broad spectrum of asset classes spanning mutual funds, alternatives, insurance and pension.
“As a platform of choice for asset managers, investors and corporates, we believe KFin is well-positioned to continue growing its market position. At Kotak Mahindra Bank, this investment is in line with our stated strategy of making minority investments in businesses which are professionally managed and have deep client entrenchment," Dipak Gupta, Joint Managing Director at Kotak Mahindra Bank said.
"We are excited about the future growth prospects of the business and believe that an investment in KFin, with its significant franchise, will create long-term value for our stakeholders,” he added.
“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,” MV Nair, Chairman at KFin Technologies said.
KFin serves 25 out of the 44 Indian Mutual Fund AMCs, which have over USD 148 billion in AUM and 35 per cent market share in equity AUM (up from 27 per cent in March 2019), the exchange filing said.
The company also serves 550-plus listed and 3,700-plus unlisted corporates with over 8 crore folios in India as a leading corporate registrar.
KFin is also one of the two players providing central recordkeeping services to the National Pension System (NPS) in India and is expanding in insurance transaction processing and fund administration.
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KFin’s proprietary applications, big data technologies and hybrid cloud environment enable servicing of over 13 crore folios and processing of over 10 lakh transactions on a daily basis. KFin is a Great Place to Work Certified organisation for the last two years (2020 and 2021) and has won several awards in the Fintech and Leadership space.
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