Kotak Mahindra Bank to acquire Sonanta Finance Pvt Ltd

Kotak Mahindra Bank Limited ("Bank") has entered into share purchase agreements with the current shareholders of Sonata Finance Private Limited ("Sonata"), a Non-Banking Finance Company - Micro Finance Institution registered with the Reserve Bank of India, to acquire 2,64,53,256 equity shares of Sonata, of face value Rs. 10 each fully paid up, for a total consideration of approximately Rs. 537 crore, constituting 100% of the issued and paid up capital of Sonata, on February 10, 2023 ("Transaction"). The Transaction is subject to requisite approvals, including that of the Reserve Bank of India.

Sonata provides a strong and vintage platform to enable the Bank to become a significant player in the financial inclusion segment, catering to the economically weaker and underserved households in a commercially viable manner. Sonata's network of 502 branches across 10 states (primarily in UP, MP and Bihar) is complementary to Bank's microfinance branch network. The acquisition is expected to be value accretive given the economies of scale and unlocking of efficiencies along with the Bank's own distribution footprint and technology. The Bank will also leverage Sonata's distribution network and provide wider suite of banking products to Sonata's customer base matching their emerging banking needs.

Shares of Kotak Mahindra Bank Limited was last trading in BSE at Rs. 1771.55 as compared to the previous close of Rs. 1770.50. The total number of shares traded during the day was 12297 in over 1170 trades.

The stock hit an intraday high of Rs. 1778.00 and intraday low of 1764.80. The net turnover during the day was Rs. 21779748.00.

Source : Equity Bulls

Keywords

KotakMahindraBank INE237A01028 Acquisition SonataFinance