Uday Kotak raises Infina Finance stake via family trust as Kotak Group trims holding

Billionaire banker Uday Kotak has increased his stake in Infina Finance Private Limited through his family trust, KF Trust, acquiring an 8.99% stake for Rs 375.35 crore. The transaction is part of a larger deal in which Kotak Mahindra Capital Company (KMCC), a wholly owned subsidiary of Kotak Mahindra Bank, divested a combined 30.99% stake in Infina Finance for a total consideration of Rs 1,293.91 crore.

Other buyers include firms linked to billionaire investor Radhakishan Damani—Derive Trading and Resorts Private Limited and Bright Star Investments Private Limited—which together acquired a 9.90% stake for Rs 413.35 crore. Trusts representing the estate of Rakesh Jhunjhunwala picked up a 12.10% stake for Rs 505.20 crore, signalling continued deployment of the late investor’s capital into financial services.

ALSO READ: Kotak Mahindra Bank arm KMCC to sell part stake in Infina for Rs 1,294 crore


The bank clarified that transactions with Derive Trading, Bright Star Investments, and the Jhunjhunwala trusts do not qualify as related-party transactions. However, the sale to KF Trust—whose beneficiaries are part of the promoter group—has been classified as a related-party transaction, albeit conducted at arm’s length.

As of March 31, 2025, the Kotak Mahindra Group held a 49.99% stake in Infina Finance. Post-transaction, its holding will decline to 19%, and Infina will cease to be an associate of Kotak Mahindra Bank.

For the financial year ended March 31, 2025, Infina Finance reported a turnover of Rs 532.66 crore and a net worth of Rs 2,727.99 crore. For the quarter ended December 2025, it posted a net profit of Rs 42 crore, compared with Rs 49 crore in the year-ago period.

The deal, signed on March 21, 2026, is expected to close by March 31, 2026, and could provide a boost to Kotak Mahindra Bank’s March-quarter earnings. The stake sale will also free up capital for redeployment into higher-priority growth areas.

Infina Finance, held by Kotak Mahindra Bank through KMCC and the Kotak family, offers a range of financial services including lending against securities, lending against property, commercial real estate financing, and insurance distribution.