Kotak Mahindra Bank Approves Sonata-BSS Amalgamation
ECONOMY & POLICY

Kotak Mahindra Bank Approves Sonata-BSS Amalgamation

Kotak Mahindra Bank announced that its wholly-owned subsidiaries, Sonata Finance Private Ltd and BSS Microfinance Ltd, have approved a scheme of amalgamation at their respective board meetings. The merger will see Sonata combine with BSS Microfinance on a going concern basis, pending approval from the shareholders and creditors of both companies, as well as the National Company Law Tribunal (NCLT) and other regulatory authorities.

As of March 31, 2024, the combined net worth of Sonata and BSS is less than 2% of Kotak Mahindra Bank's overall net worth. The transaction is based on an arm's length price determined by an independent valuation report.

Under the scheme, BSS will issue 1,931 shares of face value ?10 each for every 10,000 shares of face value ?10 held by shareholders of Sonata. Importantly, Kotak Mahindra Bank itself is not a party to this scheme, and there will be no change in its shareholding pattern as a result of the amalgamation. Both subsidiaries operate as business correspondents for the bank, providing microfinance and small loans to women borrowers and individuals.

As of March 31, 2024, Sonata's net worth was Rs3.89 billion, while BSS's net worth stood at Rs.10.10 billion. Kotak Mahindra Bank previously announced the acquisition of Sonata Finance in February 2023.

Kotak Mahindra Bank announced that its wholly-owned subsidiaries, Sonata Finance Private Ltd and BSS Microfinance Ltd, have approved a scheme of amalgamation at their respective board meetings. The merger will see Sonata combine with BSS Microfinance on a going concern basis, pending approval from the shareholders and creditors of both companies, as well as the National Company Law Tribunal (NCLT) and other regulatory authorities. As of March 31, 2024, the combined net worth of Sonata and BSS is less than 2% of Kotak Mahindra Bank's overall net worth. The transaction is based on an arm's length price determined by an independent valuation report. Under the scheme, BSS will issue 1,931 shares of face value ?10 each for every 10,000 shares of face value ?10 held by shareholders of Sonata. Importantly, Kotak Mahindra Bank itself is not a party to this scheme, and there will be no change in its shareholding pattern as a result of the amalgamation. Both subsidiaries operate as business correspondents for the bank, providing microfinance and small loans to women borrowers and individuals. As of March 31, 2024, Sonata's net worth was Rs3.89 billion, while BSS's net worth stood at Rs.10.10 billion. Kotak Mahindra Bank previously announced the acquisition of Sonata Finance in February 2023.

Next Story
Technology

We’re building robots that flow, not just move

Founded in 2021, Flo Mobility is reimagining construction automation with vision-AI robots designed for seamless movement through complex sites. In conversation with CW, Manesh Jain, Founder & CEO, discusses the company’s origin, its LiDAR-free tech stack, and expansion plans in the Middle East and US.What inspired the name Flo Mobility? Why ‘Flo’ and not ‘Flow’?When we started the company in 2021, our focus was on building autonomous navigation systems for robots. Since our work centred around robot movement, ‘mobility’ naturally became part of the name. We wanted to co..

Next Story
Real Estate

We’re committed to setting benchmarks in sustainable luxury living

From a landmark land acquisition in Boisar to ambitious launches across the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru and Pune, Birla Estates is driving future-ready growth with a strong focus on sustainability, partnerships and premium living, firmly anchored in its LifeDesigned® philosophy. K T Jithendran, Managing Director & CEO, outlines the company’s premium, sustainable growth playbook in conversation with PRATAP PADODE, Editor-in-Chief, CW. Excerpts:Birla Estates recently acquired a 70.92-acre land parcel in Boisar, Maharashtra, for..

Next Story
Infrastructure Urban

Mumbai’s land crunch and ageing homes call for structured renewal

Founded in 2022, Etonhurst Capital Partners is a real-estate fund management platform focused on the Indian market. As the firm achieves the first close of Rs 1.8 billion for its debut Rs 5 billion fund, Bamasish Paul, Co-founder, Managing Partner & CEO, discusses its sharp focus on redevelopment-driven value creation in Mumbai’s urban core with CW. Excerpts:Etonhurst Capital has achieved a significant milestone with the first close of Rs 1.8 billion for its Rs 5 billion fund. What factors contributed to this early success and how do you plan to attract further investments to r..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?