Kotak Mahindra Bank and one of its wholly-owned subsidiary has together offloaded 20 per cent stake in ECA Trading Services Limited (ECA), formerly known as Ace Derivatives & Commodity Exchange Limited.
The cash consideration for the transaction, which was completed on March 18, stood at Rs 1.67 crore for Kotak Mahindra Bank and Rs 2.27 crore for Kotak Mahindra Prime.
In a regulatory filing Kotak Mahindra Bank said it has divested 8.50 per cent equity stake in ECA Trading Services, while its subsidiary Kotak Mahindra Prime has offloaded 11.50 per cent.
The divestment was done “to comply with the RBI Regulations on investment in a non-financial services entity since ECA has ceased to be a commodity exchange,” the filing added.
Post this transaction, “the Bank and the Group will hold 20 per cent equity stake in ECA,” the filing said.
The networth of ECA as of March 31, 2019 stood at Rs 16.30 crore.
Shares of Kotak Mahindra Bank were trading at Rs 1,184.80 a piece on BSE, up 1.01 per cent from the previous close.
Source: Economic Times