Premji Invest: Wipro founder Azim Premji’s family firm Premji Invest may soon buy a major stake in Nainital Bank, a subsidiary of Bank of Baroda. Negotiations are going on for that.
Premji Invest
Wipro founder Azim Premji’s family firm Premji Invest may soon buy a major stake in Nainital Bank, a subsidiary of Bank of Baroda. Negotiations are going on for that. According to the sources, the agreement is currently in the final stage, the agreement may be finalized soon.
According to a report in the Economic Times, Premji Invest is negotiating on key issues. However, no final decision has been taken regarding the acquisition yet. Sources say that around 51 per cent of the shares will be sold in the first week and the remaining shares will be disinvested. Currently, Bank of Baroda holds about 98 percent stake in Nainital Bank, the bank may sell its entire stake.
🔸 Premji Invest is set to acquire around 51% stake in Nainital Bank, which is owned by @bankofbaroda
🔸 If the deal goes through, the Uttarakhand-based bank will be valued at Rs 800 crore
🔸Bank of Baroda is looking to divest its entire 98% stake in the bank
— ETtech (@ETtech) May 3, 2024
Premji Invest is a company with more than 10 billion dollars in assets. The company is known for its active involvement in the startup and technology sectors in India.
The company has significant stake in various ventures including PolicyBazaar, Lenskart and CreditB. Now Azim Premji is going to enter the investment banking sector. The company is already involved in non-banking finance, so direct investment in the banking sector can be beneficial.
RBI is looking for a technically competent company to participate in the Nainital Bank Disinvestment Scheme. The reason for this is that technological changes have to be made in the company. In this scenario, many other fintech companies and investors have shown interest.
These also include Zerodha, MobiKwik. According to regulatory filings, Nainital Bank operates a network of 168 branches across Uttarakhand, Rajasthan, Uttar Pradesh, Delhi and Haryana.
Nainital Bank was established in 1922 to cater to the banking needs of the local people. In 1973, the Reserve Bank of India directed the Bank of Baroda to supervise its operations. Today Nainital Bank has around 168 branches in Uttarakhand, Uttar Pradesh, Delhi, Haryana and Rajasthan.
The bank provides RTGS, NEFT, RuPay ATM along with debit card, internet and mobile banking services to its customers. A Bloomberg report said that Azim Premji is looking to invest in fintech and startups and earlier this year he received in-principle approval to open an investment fund in Gift City.
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