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Kotak Mahindra subsidiary exits outsourcing firm Matrix Business Services
Photo Credit: VCCircle

Kotak Mahindra Investments Ltd (KMIL), a wholly-owned real estate and corporate financing subsidiary of Kotak Mahindra Bank, has sold its entire stake in associate company Matrix Business Services India Pvt. Ltd.

KMIL was planning to sell 82,680 shares amounting to 19.77% stake for Rs 10.32 crore ($1.5 million), the private-sector lender said in a stock-exchange filing. It did not disclose the buyer’s name. The deal was completed on Friday.

“Matrix will cease to be an associate company of KMIL and consequently of the bank,” it added.

Matrix is an outsourcing company that was founded in 2003. It is engaged in providing assurance services, claims processing, including employee background verification checks and product and process audits.

KMIL was the single-largest shareholder in Matrix. After its exit, Ramesh Sharma and PC Balasubramanian will become the joint largest shareholders with each owning 13.4% stake in the company, as per the 2018 annual report. The annual report for 2019 has not yet been made public. 

Another corporate body, Mahindra & Mahindra Contech Ltd, holds 2.67% take in Matrix.

Shares of Kotak Mahindra Bank closed at Rs 1,378.05 apiece on the BSE on Friday, up 0.96% from the previous close.

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