Shares of Kotak Mahindra Bank had a muted start on February 26 after the Zurich Insurance Company agreed to acquire a 70 percent stake in in subsidiary Kotak General.
At 9.20 am, the stock was trading at Rs 1,719.80 on the National Stock Exchange.
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In a February 23 regulatory filing, Kotak Mahindra Bank said the lender along with Kotak General Insurance and Zurich Insurance company had agreed that Zurich will acquire a 70 percent stake in Kotak General through a combination of primary and secondary acquisitions in a single tranche for Rs 5,560 crore.
In November 2023, Zurich Insurance announced that it would first acquire a 51 percent stake in Kotak Mahindra General Insurance Company through a combination of fresh growth capital and share purchase, and an additional 19 percent stake will be picked up later on.
Also read: Zurich Insurance to buy 70% stake in Kotak General for Rs 5,560 cr in single tranche
Jefferies has a "hold" call on the stock with a target price of Rs 2,050. The foreign brokerage said the business is small with around 0.5 percent premium market share and 0.3 percent of net worth.
Kotak General Insurance is a 100 percent subsidiary of Kotak Mahindra Bank. Zurich Insurance Company is a Swiss Insurance Company with its headquarters in Zurich.
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