One of India’s largest private sector lenders HDFC Bank on Wednesday acquired a minority stake in Mintoak Innovations Private Limited for Rs 31.1 crore.

The bank said in a regulatory filing that it has executed agreements on December 13 to 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 for an aggregate consideration of Rs. 9,731 per CCPS to be issued by Mintoak.

The transaction will provide HDFC Bank with a 7.75 per cent stake in the company.

"Financial investment in a growing fintech startup offering payments and value-added services to merchants and enhancing acquirers’ digital engagement with merchants," stated the bank citing the objective of investing in the start-up.

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. For the financial year ending March 31, 2022, Mintoak had a turnover of Rs 11.28 crore and a net profit of Rs 1.47 crore.

"Since the shareholding of the Bank in Mintoak post completion of the Transaction would be below 10% of the total share capital of Mintoak on a fully diluted basis, the Bank would not require regulatory approvals to proceed with the Transaction," it said.