Kotak Mahindra Bank will offer 20 crore shares in Airtel Payments Bank Ltd, which is 8.57 percent stake to Bharti Enterprises. The sale amounts to Rs 294 crore.
Kotak Mahindra Bank Limited announced in a regulatory filing that it has executed a share buy agreement.
According to the company, the shares were purchased for an aggregate consideration of Rs 200 crore. This was in tranches that were made during the calendar years 2016/2017.
The share sale’s cash consideration would be Rs 294.8 crore or more at Rs 14.74 per unit. The terms of the share purchase contract will determine the amount.
The proposed transaction is not subject to regulatory or governmental approvals by Kotak Mahindra Bank. Bharti Enterprises Limited received “No Objection” from the RBI in order to allow execution of the transaction. It is expected that the transaction will be completed by September 15, 2020.
Airtel Payments Bank, a payments bank licensed by the Reserve Bank of India, is authorized to perform the activities allowed under the license. It began operations as a payment bank on November 23, 2016.