Kotak buys out Old Mutual's 26% stake for Rs 1,293 cr in insurance arm

Kotak Mahindra Bank will buy out Old Mutual’s 26 per cent stake in the life insurance joint venture for Rs 1,293 crore, subject to approvals.

With this transaction, Kotak Life will be fully owned by Kotak Mahindra Group. As of March 31, 2017, the net worth of Kotak Life stood at Rs  1,825 crore.

Based on the transaction with Old Mutual, Kotak Life’s enterprise valuation works out to Rs 4,972 crore, said Gaurang Shah, president-asset management, insurance and international business, Kotak Mahindra Bank. It could take about three months for the transaction to be completed.

Old Mutual is