Kotak’s strategic MCX bet delivers 17-fold returns over 11 years

With MCX shares crossing the ₹10,000 mark for the first time, one of the biggest beneficiaries of the exchange’s remarkable rally is the country’s third-largest private lender — Kotak Mahindra Bank.

Owned by Asia’s richest banker Uday Kotak, the bank remains the largest shareholder in the commodity bourse, holding the 15% stake it acquired more than a decade ago — a contrarian bet that has since turned into a multibagger windfall.

Kotak Mahindra Bank invested ₹459 crore in the Multi Commodity Exchange

of India Ltd (MCX) in 2014, buying a 15% stake at ₹600 per share. The investment came during a crisis triggered by the NSEL scam, which forced Financial Technologies India Ltd to divest its shareholding. The contrarian purchase reflected the private lender’s philosophy of deploying capital when others are fearful. Over the last 11 years, the MCX investment has delivered an annualised return of over 25%.

At a market capitalisation of ₹52,400 crore, Kotak Mahindra Bank’s 15% holding is now worth over ₹7,800 crore.

Beyond MCX, the bank also holds stakes in several other companies, including KFin Technologies, India Homes, Pioneer Embroideries and Quadrant Televentures. Its nearly 8% stake in KFin Technologies is valued at ₹1,400 crore, while its 1.3% holding in India Homes and 2.4% stake in Pioneer Embroideries are valued at ₹5.4 crore and ₹2.1 crore, respectively.

According to the Bloomberg Billionaires Index, founder Uday Kotak ranks 12th among Indian billionaires with a net worth of $15.5 billion — an increase of $1.6 billion so far in 2025. The bulk of his wealth comes from his 26% stake in Kotak Mahindra Bank, valued at $12 billion. The stock has gained 18% since the beginning of the year.

Shares of MCX hit a record ₹10,311 on the NSE on Wednesday and have surged 65% so far this year, following a stellar 95% rally in 2024 and a 106% jump in 2023. In comparison, the Nifty50 has risen 11% this year after gains of 9% and 20% in the previous two years.