Kotak Mahindra to sell 30.99% stake in Infina Finance for ₹1,293 crore; unit to cease being associate

Kotak Mahindra Bank on Saturday said its wholly owned subsidiary, Kotak Mahindra Capital Company Ltd (KMCC), has signed definitive agreements to sell a part of its stake in Infina Finance Private Limited for a total consideration of ₹1,293.91 crore, according to a regulatory filing.

The agreements were executed on March 21, 2026, for the divestment of a combined 30.99% stake in Infina through multiple transactions. The bank said the deal is subject to customary conditions and is expected to be completed on or before March 31, 2026.

As part of the transaction, KMCC will sell a 9.90% stake, equivalent to 2,17,899 equity shares, to Derive Trading and Resorts Private Limited and Bright Star Investments Private Limited for ₹413.35 crore.

In addition, a 12.10% stake, or 2,66,321 equity shares, will be sold to trusts representing the estate of late investor Rakesh Jhunjhunwala for ₹505.20 crore.

KMCC will also divest an 8.99% stake, comprising 1,97,870 equity shares, to KF Trust, an existing shareholder of Infina, for ₹375.35 crore.

The bank clarified that the transactions involving Derive Trading, Bright Star Investments and the Jhunjhunwala trusts do not qualify as related-party transactions. However, the sale to KF Trust will be treated as a related-party transaction since its beneficiaries belong to the promoter group, though the bank said the deal is being carried out on an arm’s-length basis.

Following completion of the stake sale, KMCC’s holding in Infina will reduce to about 19%, as a result of which Infina will cease to be an associate company of Kotak Mahindra Bank.

For the financial year ended March 31, 2025, Infina Finance reported a turnover of ₹532.66 crore and a net worth of ₹2,727.99 crore. Despite being an associate, the company contributed only a small portion to the bank’s consolidated financials, accounting for about 0.50% of total income and 1.73% of net worth, the filing said.