Kotak Mahindra Bank has acquired 100% of the issued and paid-up capital of Sonata Finance Pvt Ltd for a total consideration of approximately Rs 537 crore, the private setor lender said on Thursday.
Sonata Finance is a non-banking finance company, or a micro finance institution registered with the Reserve Bank of India (RBI). With this acquisition, Sonata has become a wholly-owned subsidiary of the bank.
“We refer to our intimations dated February 10, 2023 and October 20, 2023 and wish to update you that the Bank has, today, acquired 100% of the issued and paid up capital of Sonata Finance Private Limited (“Sonata”), a Non-Banking Finance Company – Micro Finance Institution registered with the RBI for a total consideration of approximately Rs. 537 crore,” Kotak Mahindra Bank said in a regulatory filing.
Sonata is operating in 10 states through 549 branches and has an Asset Under Management (AUM) of approximately Rs. 2,620 crore as of December 31, 2023. With this acquisition, Sonata has become a wholly-owned subsidiary of the Bank.
Last year on October 20, RBI had approved Kotak Mahindra’s acquisition of Sonata Finance and making it a business correspondent subsidiary.
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