Kotak Mahindra Bank sells 32% in Infina Finance Photo | ANI
Business

Kotak Mahindra Bank to sell 31% in Infina Finance for Rs 1,294 crore

The transaction involves the transfer of equity to three distinct investor groups and is expected to be completed on or before March 31, 2026

Dipak Mondal

Kotak Mahindra Bank is set to sell a significant portion of its stake in Infina Finance Private Limited for Rs 1,294 crore to three different buyers. The transaction involves the transfer of equity to three distinct investor groups and is expected to be completed on or before March 31, 2026.

The first leg of the transaction involves the transfer of 2,17,899 equity shares, representing a 9.90% stake, to Derive Trading and Resorts Private Limited and Bright Star Investments Private Limited for Rs 413 crore. In addition, 2,66,321 equity shares, or a 12.10% stake, will be sold to the estate of Rakesh Jhunjhunwala through various discretionary trusts for Rs 505 crore.

Further, KF Trust, an existing shareholder whose beneficiaries belong to the bank’s promoter group, will acquire 1,97,870 equity shares (an 8.99% stake) for Rs 376 crore.

As of the financial year ended March 31, 2025, Infina Finance reported a turnover of Rs 532.66 crore and a net worth of Rs 2,727.99 crore. While the bank said that the sales to the Jhunjhunwala trusts and the investment firms do not constitute related party transactions, the sale to KF Trust is considered a related party transaction, though conducted at arm’s length.

Founded in 1996, Infina Finance is a non-banking financial company registered with the Reserve Bank of India, catering to a range of financial needs.

Infina is owned by Kotak Mahindra Bank through its subsidiary Kotak Mahindra Capital Company (KMCC) and the Kotak family, and offers services such as lending against securities, lending against property, commercial real estate financing, and insurance corporate agency services.

Upon completion of the transaction, KMCC’s stake in Infina will reduce to 19%, resulting in Infina ceasing to be an associate company of Kotak Mahindra Bank. The disclosure was made under Regulation 30 of the SEBI Listing Regulations.

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