Kotak Mahindra Bank (KMBL) announced that it has executed binding share purchase agreement(s) to acquire 100% of equity shares of Sonata Finance Private Limited (SFPL), a Non-Banking Finance Company, classified as an NBFC-MFI, from existing shareholders, subject to regulatory and other approvals, including from Reserve Bank of India. The acquisition is for an aggregate all-cash consideration of approximately ₹ 537 crore.
With this acquisition, SFPL will be a wholly owned subsidiary of the Bank after receiving regulatory and other approvals, a statement said.
Manish Kothari, President – Commercial Banking, Kotak Mahindra Bank said, “Sonata is a leading microfinance player and has built a strong enterprise over the last two decades. This acquisition is in sync with our broad vision and strategy. We had successfully acquired BSS Microfinance in 2017 and since then have been able to integrate & steadily grow our presence in the financial inclusion segment with an advances book in excess of ₹ 5,300 crores serving ~1.3 million borrowers. There are significant potential synergies to be realized as a result of this acquisition and we look forward to continue serving the customers in a smooth and consistent manner and ensuring their needs are well-served going forward”.
Anup Kumar Singh, CEO and MD of SFPL said, “I am extremely pleased that Sonata will be in trusted and experienced hands of the Kotak Mahindra Group. Sonata was started with the objective of providing financing to underserved customer segment. I believe this mission is best served in a scalable and sustainable manner on a big bank’s platform. The transaction will bring immense benefits to Sonata’s customers, employees and other stakeholders. I am pleased that current customer households of Sonata will benefit from Kotak Bank’s full range of products, and best-in-class digital services.”
“I would like to thank all my investors, customers, employees and other stakeholders who contributed in building the Company to this stage.”
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