Kotak Mahindra Bank‘s securities business subsidiary will acquire a nearly 10 per cent stake in financial technology company KIPL engaged in e-learning and stock market for a cash consideration of ₹10 crore.
Kotak Securities Ltd (KSL), a subsidiary of Kotak Mahindra Bank, has entered into an agreement with Kredent InfoEdge Pvt Ltd (KIPL) on July 6, 2021 for the investment of ₹10 crore for a 9.96 per cent in the total share capital of KIPL, the bank said in a regulatory filing on Tuesday.
KIPL had a turnover of ₹14.1 crore ( ₹141 million) in the financial year 2020-21.
With this acquisition, KSL will explore providing e-learning and digital value-added services to its customers, it said.
The deal is expected to be completed by the end of July 2021.
Under this, KSL will acquire 100 equity shares at a price of ₹151.61 each and 6,59,436 CCCPS at ₹151.61 each. CCCPS is the term used for cumulative compulsorily convertible preference shares that are convertible into equity shares at any time within 18 months from the date of issuance. After 18 months, CCCPS gets automatically converted into equity shares at the conversion price.
KIPL has three brands under its fold — eLearnMarkets for financial education training, StockEdge which is into data analytics for stock markets, and StockEdge Club which is a social marketplace for investors and traders.
Kotak Mahindra Bank stock closed 1.34 per cent up at ₹1754.75 apiece on BSE.
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