Indian banking and financial services company Kotak Mahindra Bank on Tuesday said that it will sell 20 crore shares held in Airtel Payments Bank (APBL) for a cash consideration of ₹294 crore or more to Bharti Enterprises Ltd.
“Kotak Mahindra Bank Limited had executed a Share Purchase Agreement for sale of 20,00,00,000 equity shares of Airtel Payments Bank Limited (ABPL) to Bharti Enterprises Limited,” the private lender said in an exchange filing today. These shares were acquired for ₹200 crore invested in tranches during calendar years 2016 and 2017.
The sale is expected to be completed by September 15 or before, for “cash consideration equal to or higher than ₹294.8 crore; to be determined in accordance with the terms of the share purchase agreement,” it added.
The 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.
APBL was incorporated on April 1, 2010, under the RBI license for payments banks. It commenced its operations as a payments bank, with effect from November 23, 2016. The company’s turnover was ₹627.19 crore in FY 20.
Stock of Kotak Mahindra Bank traded at Rs 1747.40 apiece on BSE, up 0.66 percent from the previous close.