HDFC Bank acquires minority stake in Mintoak for Rs 31.1 cr

HDFC Bank Limited has informed that the bank has executed agreements on December 13, 2022 to subscribe to 21,471 fully paid up Compulsory Convertible Preference Shares (“CCPS”) of face value of Rs. 20/- each at a premium of Rs. 9,711.

The Bank informed in an exchange filing as Disclosure under Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”).

The aggregate consideration is Rs. 9,731/- per CCPS to be issued by Mintoak Innovations Private Limited (“Mintoak”) and to purchase 10,538 fully paid up Equity Shares of face value of Rs. 10/- each at a premium of Rs. 9,721/- for an aggregate consideration of Rs. 9,731/- per Equity Share from certain existing shareholders of Mintoak.

Mintoak is a fintech start-up that provides a payments-led platform offering value-added services to merchants to engage with their customers and for acquirers to enhance their engagement with merchants through digital engagements.

During fiscal 2021-22, the startup had a turnover (operating income) was Rs 11.28 crore and its profit after tax was Rs 1.47 crore, the statement said.

HDFC Bank also said since the shareholding of the Bank in Mintoak post-completion of the transaction would be below 10 per cent of the total share capital of Mintoak on a fully diluted basis, the Bank would not require regulatory approvals to proceed with the transaction.

The lender also said the promoters of the Bank do not have any interest in Mintoak as of date.