Indian non-public sector lender Kotak Mahindra Financial institution is trying to divest a minority stake in its common insurance coverage arm, Bloomberg reported citing sources aware of the matter.
The lender, which is backed by billionaire Uday Kotak, has employed Morgan Stanley to advise on the potential stake divestment.
In accordance with the sources, by the stake sale in Kotak Basic Insurance coverage the financial institution might garner a lot as just a few hundred million {dollars}.
The method may entice bids from each monetary buyers as nicely potential strategic companions, the sources added.
At present, discussions are within the early phases and specifics particulars similar to dimension and construction of the deal aren’t recognized.
Morgan Stanley and Kotak Mahindra Financial institution spokesman refused to supply any remark over the report.
In accordance with its web site, Kotak Basic Insurance coverage was based in 2015 and had 25 branches throughout India by the tip of 2022.
The enterprise, which employs with greater than 1,300 staff, presents a wide selection of insurance coverage merchandise similar to auto, well being, and industrial.
In December final yr, experiences emerged that Indian monetary companies firm Aditya Birla Capital is contemplating a sale of its insurance coverage brokerage enterprise.
Samara Capital, which is Amazon’s Indian non-public fairness companion, stated to have made a suggestion for Aditya Birla’s insurance coverage broking unit.
