Private sector lender Kotak Mahindra Bank acquired around 46.7 per cent stake in Kotak Mahindra Pension Fund Limited (KMPFL). With this stake purchase, the lender’s stake in KMPFL has increased to 51 per cent, stated the bank in its filing.
The cost of acquisition is Rs 12.71 crore, stated the lender.
After the latest stake purchase by the bank, KMPFL is now its direct subsidiary. The bank acquired 1.30 crore shares from Kotak Mahindra Asset Management Company Limited (KMAMC) which is a 100 per cent subsidiary of the bank.
Now, KMAMC’s stake in the pension fund after sale to the bank stands at 49 per cent.
The bank informed the exchange, “It may be further noted that the acquisition price has been arrived at on the basis of a valuation conducted by an independent chartered accountant firm and the said transaction is at arms’ length and in the ordinary course of business.”
The acquisition was completed on May 17, 2021, after it received approvals from the Reserve Bank of India (RBI) and the PFRDA.
KMPFL has been appointed as a Pension Fund Manager by PFRDA for managing funds under the National Pension System. KMPFL’s turnover for FY 19, FY 20 and FY 21 was Rs 2.54 crore, Rs 2.13 crore and Rs 1.31 crore respectively.