In February, Zurich Insurance had said it would acquire a 70 percent stake in the insurance company for Rs 5,560 crore in a single tranche
New Delhi: Kotak Mahindra Bank on Wednesday said it has received the Reserve Bank of India’s (RBI) approval to sell a 70 per cent stake in its general insurance arm to Zurich Insurance Company.
“…the Reserve Bank of India has, vide its letter dated June 4, 2024… conveyed its approval for the transaction. All regulatory approvals required for the transaction have now been received…,” Kotak Mahindra Bank said in a regulatory filing.
Changing its earlier decision, In February, Zurich Insurance had said it would acquire a 70 percent stake in the insurance company for Rs 5,560 crore in a single tranche.
In November last year, Zurich Insurance had announced plans to acquire a 51 per cent stake in Kotak Mahindra General through a combination of capital infusion and share purchase, followed by a subsequent acquisition of an additional stake of 19 per cent within three years from the initial acquisition for Rs 5,560 crore.
Shares of Kotak Mahindra Bank closed at Rs 1,718.75 apiece, up 4.89 per cent over the previous close on the BSE.