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
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?