HDFC Bank Acquires 7.75% Stake In Mintoak

HDFC Bank on Wednesday said that it has acquired a minority stake in fintech start-up Mintoak for a cash consideration of Rs 31.1 crore.

The bank will subscribe to 21,471 fully paid-up compulsory convertible preference shares (CCPS) of the face value of Rs 20 each at a premium of Rs 9,711, taking the total consideration to Rs 9,731 per CCPS.

It will purchase 10,358 fully paid-up equity shares of Mintoak for a consideration of Rs 9,731 per share from existing shareholders of Mintoak, the bank informed in a regulatory filing.

Post-transaction, HDFC Bank will hold a 7.75 per cent stake in Mintoak. The agreements were signed on 13 December, as per the exchange filing.

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.

The deal is likely to be completed by 31 January 2023, subject to conditions precedent.

Since the overall stake of the bank, post-transaction, will be less than 10 per cent, it will not require regulatory approval.