Kotak Bank completes buyout of stake from life insurance subsidiary

Kotak Mahindra Bank has completed the acquisition of 26 percent equity stake in its subsidiary Kotak Mahindra Old Mutual Life Insurance from Old Mutual Plc for Rs. 1,293 crore, the bank informed the bourses.

In April 2017, Kotak had inked an agreement to purchase the entire 26 per cent equity stake held by Old Mutual Plc, UK (OM), in Kotak Mahindra Old Mutual Life Insurance. Following the acquisition, Kotak Mahindra Bank now holds 100 per cent stake in the subsidiary.

Kotak Mahindra Bank in March raised over Rs. 5,000 crore by issuing up to 6.2 crore equity shares to pursue consolidation opportunities in the Indian financial services space.

Kotak Mahindra Bank and its affiliates held 74 per cent stake in Kotak Life before the deal. The net worth of Kotak Life stands at Rs. 1,825 crore as on March 31, 2017. Shares of Kotak Bank ended at Rs. 1,082.35, up 2.3 per cent on the NSE.