Private sector lender Kotak Mahindra Bank Ltd has acquired 100 percent of the issued and paid-up capital of Sonata Finance Pvt Ltd for a total consideration of approximately Rs. 537 crore, it said in an exchange filing on March 28.
With this acquisition, Sonata has become a wholly-owned subsidiary of the bank.
Sonata Finance is a non-banking finance company, or a micro finance institution registered with the Reserve Bank of India (RBI). The company operates in 10 states through 549 branches and has an Asset Under Management (AUM) of approximately Rs 2,620 crore as of December 31, 2023.
Also Read | Exclusive: Kotak Bank expects RBI approval for Sonata Finance acquisition anytime in FY24
On October 20, 2023 RBI had approved Kotak Mahindra’s acquisition of Sonata Finance and making it a business correspondent subsidiary.
"The RBI has, vide its letter dated October 19, 2023 received by the Bank on October 19, 2023, conveyed its approval to the Bank, for acquiring 100 percent of the issued and paid up capital in Sonata, as mentioned above, and to make Sonata a Business Correspondent subsidiary of the Bank," Kotak Mahindra had said in a filing.
On October 20, 2023 RBI had approved Kotak Mahindra’s acquisition of Sonata Finance and making it a business correspondent subsidiary.
On August 28, 2023 Moneycontrol was the first to write that Kotak Mahindra was hopeful of getting the nod for its acquisition of the Lucknow-based microlender Sonata Finance in FY24.
At 12.51 pm, shares of Kotak Mahindra were up nearly 1 percent at Rs.1,792.35. On a year-to-date basis, the bank has lost over 6 percent in its share value.
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