Kotak Mahindra buys out Goldman Sachs in domestic JV''s; Goldman to set up own operations

16 March 2006

Kotak Mahindra Bank will acquire the stake held by global investment bank Goldman Sachs in two financial services subsidiaries of the bank. Goldman Sachs held 25 per cent each of the subsidiaries, Kotak Mahindra Capital Company and Kotak Securities. After the stake acquisition by Kotak, these two companies will become wholly owned subsidiaries of the bank.

Kotak Mahindra is to pay Rs210 crore for the 25-per cent stake in Kotak Securities and Rs123 crore for the 25-per cent stake in Kotak Mahindra Capital Company.

The Kotak Mahindra group has also terminated the strategic alliance with Goldman Sachs. The two parties have entered into a business co-operation agreement for one year.

Goldman Sachs has separately announced that it would set up its own investment bank and stock brokerage in India.

The relationship between Goldman Sachs and Kotak group started in the early ''90s. Goldman Sachs acquired stakes in the two companies in 1996.

Kotak Mahindra Capital Company is one of the leading investment banks in the country. The company also has operations in countries like US, the UK, the UAE and Mauritius through subsidiaries.