Mumbai/IBNS: Indias one of the largest private sector lenders HDFC Bank acquired a minority stake in fintech startup Mintoak, the bank said in a regulatory filing on Wednesday.
Mintoak is a fintech start-up that provides a payments-led platform offering value-added services to merchants to engage with their customers and for acquirers to enhance their engagement with merchants through digital engagements.
In a regulatory filing, the bank said it has executed agreements on December 13 to subscribe to 21,471 fully paid up Compulsory Convertible Preference Shares (CCPS) of face value of Rs. 20 each at a premium of Rs. 9,711 for an aggregate consideration of Rs. 9,731 per CCPS to be issued by Mintoak.
With the transaction, HDFC Bank will acquire a 7.75 percent stake in the company.
The deal is expected to be completed by January 31, 2023, stated the release.
Since the shareholding of the Bank in Mintoak post completion of the Transaction would be below 10% of the total share capital of Mintoak on a fully diluted basis, the Bank would not require regulatory approvals to proceed with the Transaction, said a press release by HDFC Bank.
In the last financial year, Mintoak had a turnover of Rs 11.28 crore and a net profit of Rs 1.47 crore.
