Kotak Mahindra Bank, subsidiary sell 20 pc stake in ECA Trading Services
Mar 19, 2020, 13:15 IST
New Delhi, Mar 19 () 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.
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. SID DRR
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.
Advertisement
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.
Advertisement
(This story has not been edited by www.businessinsider.in and is auto–generated from a syndicated feed we subscribe to.)