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Kotak Mahindra Bank will sell 20 crore shares in Airtel Payments Bank Ltd amounting to 8.57 per cent stake to Bharti Enterprises for around Rs 294 crore.

Kotak Mahindra Bank Limited has executed a share purchase agreement for the sale, the bank said in a regulatory filing.

It said that the shares were acquired for an aggregated consideration of Rs 200 crore invested in tranches during calendar years 2016 and 2017.

The cash consideration for the share sale would be equal to or higher than Rs 294.8 crore at Rs 14.74 per share. The consideration will be determined in accordance with the terms of the share purchase agreement.

Kotak Mahindra Bank does not require any governmental or regulatory approvals for the proposed transaction. Bharti Enterprises Limited has received 'No Objection' from the RBI to enable execution of the proposed transaction, which is expected to be completed by September 15, 2021, said the filing.

Airtel Payments Bank is a payments bank duly licensed by the Reserve Bank of India to carry out the activities permitted under the license issued by the central. It commenced its operations as a payments bank, with effect from November 23, 2016.