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Friday, July 19, 2024
HomeKotak Mahindra shares rise 4% on RBI nod to Zurich Insurance buying...

Kotak Mahindra shares rise 4% on RBI nod to Zurich Insurance buying 70% in Kotak General

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Kotak Mahindra shares rise 4% on RBI nod to Zurich Insurance buying 70% in Kotak General

Kotak Mahindra Bank rose 4.6% to Rs 1714.85 on BSE. Market cap of the lender rose to Rs 3.40 lakh crore.

Shares of Kotak Mahindra Bank rose over 4%  today after the Reserve Bank of India cleared Zurich Insurance Company’s proposed buying of 70 percent stake in Kotak Mahindra General Insurance Company for Rs 5,560 crore. Kotak Mahindra Bank rose 4.6% to Rs 1714.85 on BSE. Market cap of the lender rose to Rs 3.40 lakh crore.

Kotak General is a wholly owned subsidiary of Kotak Mahindra Bank. The approval was received on June 4.

The bank said all the required approvals were received and the transaction would be completed “upon fulfillment of other conditions precedent”.

In February this year, the lender announced that Zurich Insurance would buy a 70 percent stake in the insurance company for Rs 5,560 crore in a single tranche.

In November 2023, Zurich Insurance said it would first acquire a 51 percent stake through a combination of fresh growth capital and share purchase, and an additional 19 percent stake later on.

“We refer to our disclosures dated November 2, 2023 and February 23, 2024 in relation to the proposed acquisition of 70% shareholding in Kotak Mahindra GeneralInsurance Company Limited (“Kotak General”) by Zurich Insurance Company Ltd (“Zurich”) by way of a combination of primary and secondary acquisitions, for a total consideration of approximately Rs. 5,560 crore (“Transaction”). In this regard, we wish to update you that the Reserve Bank of India has, vide its letter dated June 4, 2024 received by the Bank on June 4, 2024, conveyed its approval for the Transaction. All regulatory approvals required for the Transaction have now been received and the Transaction will be completed upon fulfilment of other conditions precedent,” said Kotak Mahindra Bank in a communication to bourses.

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