Kotak Mahindra Bank acquires stake in new fintech company Ferbine
Kotak Mahindra Bank will acquire a stake of 9.99% for INR 49,950 in Ferbine Private Limited, a new fintech company promoted by Tata Sons.
The Indian private sector lender will subscribe to 4,995 equity shares in the company, priced at INR 10 per share.
In the normal course of business, Kotak Mahindra Bank and its subsidiaries could carry out business dealings with Ferbine in the future at an arm’s length.
Ferbine was incorporated last month to apply to the Reserve Bank of India (RBI) for the pan-India umbrella entity (PUE) license.
The fintech company is planned to mainly operate retail payment systems across India.
Kotak Mahindra Bank expects to close the acquisition of stake by this month-end.
The bank could take part in the future fundraising of Ferbine.
Recently, Kotak Mahindra Bank reported a 16.1% increase in its third quarter net profit of this fiscal at INR18.53 billion compared to INR 15.95 billion reported for the same quarter of the last fiscal. Read more about Kotak Mahindra Q3FY21 results here.