which if it comes through shall create India’s eighth-largest financial entity by asset value.
People in the know say Uday Kotak, Founder and CEO of Kotak Mahindra, is looking at an all-stock acquisition with the founders of IndusInd Bank retaining a stake in the lender after a deal.
With the news coming our, shares of IndusInd jumped by 4.1% while those of Kotak Mahindra slipped less than 1%.
This acquisition, if it comes through shall boost Kotak Mahindra’s asset portfolio by as much as 83% while being a lifesaver for IndusInd, which has seen its market value drop 60% to $6 billion after concerns arose over worsening asset quality and erosion of low-cost deposits. Kotak’s last acquisition of a part of ING Group NV took place in 2014 for USD 2 billion
