The bank will subscribe to 21,471 fully paid up Compulsory Convertible Preference Shares (CCPS) of 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 also purchase 10,538 fully paid-up equity shares of Mintoak for a consideration of Rs 9,731 per share from certain existing shareholders of Mintoak.
After the transaction, HDFC Bank will hold 7.75 percent stake in Mintoak.
A fintech start-up, Mintoak provides a payments-led platform that offers value added services to merchants to engage with their customers and for acquirers to enhance their engagement with merchants through digital engagements.
Investment in a growing fintech startup, that offers payments and value-added services to its merchants and enhances the digital engagement of acquirers with merchants is cited as the rationale behind this move.
Axcording to the lender, agreements for the same were signed on December 13, 2022.
For the financial year ending March 31, 2022, Mintoak had a turnover of Rs 11.28 crore and net profit of Rs 1.47 crore.
HDFC Bank and its subsidiaries in the normal course of business may have business dealings at an arm’s length.
The deal is likely to be completed by January 31, 2023, subject to conditions precedent. As the overall stake of the bank post the transaction will be less than 10 percent, this will not require regulatory approval.