Mumbai: Kotak Mahindra Bank will sell its 8.6% holding in Airtel Payments Bank to the Mittal-controlled Bharti Enterprises for close to Rs 300 crore.
Kotak is said to be making a gain of 50% in the investment. The private lender acquired these shares in 2016 and 2017 for a consideration of Rs 200 crore.
“Kotak Mahindra Bank had executed a Share Purchase Agreement for sale of 20 crore equity shares of Airtel NSE 0.26 % Payments Bank Limited to Bharti Enterprises Limited,” the lender said in an exchange filing.
The sale is expected to be completed by September 15 for a cash consideration of Rs 294 crore.
Airtel Payments Bank was incorporated on April 1, 2010, under the Reserve Bank of India’s licence for payments banks.
It commenced its operations as a payments bank, with effect from November 23, 2016. The payments bank’s turnover was Rs 627.19 crore in FY20.
Kotak Mahindra Bank said it does not require any governmental or regulatory approvals for the proposed transaction.
Bharti Enterprises has received no objection from the RBI to enable execution of the proposed transaction, it said.
