Kotak Mahindra Bank Ltd to invest in Airtel M Commerce Services ltd

Kotak Mahindra Bank Ltd has signed on February 23, 2016 a Share Subscription and Shareholders Agreement with Airtel M Commerce Services Limited Company (AMSL) and Bharti Airtel Limited for agreeing to acquire 9,83,82,022 equity shares at Rs. 10/- each aggregating to Rs. 98.38 crore being 19.90% of the paid-up capital of AMSL.

AMSL has been granted an "in-principle" approval to convert itself in to a payments bank by RBI. Basic but critical services such as small savings accounts, remittances, etc. will bring a large number of low income households and small businesses under the formal banking network and Kotak proposes to invest in this business through AMSL.

Kotak has obtained approval from RBI for acquiring equity stake in AMSL.

Shares of KOTAK MAHINDRA BANK LTD. was last trading in BSE at Rs.621.45 as compared to the previous close of Rs. 640.15. The total number of shares traded during the day was 66648 in over 2291 trades.

The stock hit an intraday high of Rs. 641 and intraday low of 619.75. The net turnover during the day was Rs. 41562051.

Source : Equity Bulls

Keywords