Axis, Kotak acquire 7.84% stake each in Open Network for Digital Commerce

Private sector lenders Axis Bank and Kotak Mahindra Bank on Wednesday said they have acquired 7.84 per cent stake each in Open Network for Digital Commerce (ONDC).

Both the banks have invested Rs 10 crore each in the entity.

"Bank has acquired 7.84 per cent shareholding in ONDC through subscription of 10,00,000 Equity Shares of face value of Rs 100 each," Kotak Mahindra Bank said in a regulatory filing.

Through this acquisition, the lender said it "wishes to participate in the creation of infrastructure to develop and transform the Indian digital commerce ecosystem".

In a separate filing, Axis Bank said ONDC on March 22 allotted Axis Bank 10,00,000 equity shares of face value of Rs 100 each for a consideration of Rs 10 crore. Post allotment, the shareholding of the bank in ONDC is 7.84 per cent.

ONDC was incorporated in India on December 30, 2021.

The company is engaged in creating an open public digital infrastructure to develop and transform the Indian digital commerce ecosystem for both goods and services and to expand alternatives for both buyers and sellers to engage in the digital commerce space.

Shares of Kotak Mahindra Bank on Wednesday traded 1.44 per cent lower at Rs 1,782.55 apiece on the BSE during the late trade, whereas Axis Bank's scrip traded 0.46 per cent lower at Rs 728.75.