Sonata Finance to merge with BSS Microfinance: Kotak Mahindra Bank

Kotak Mahindra Bank on Monday said Sonata Finance Private Ltd and BSS Microfinance Ltd, both wholly-owned subsidiaries of the bank, at their respective board meetings have approved a scheme of amalgamation. As per the scheme of amalgamation approved on Monday, Sonata would merge with BSS Microfinance Ltd on a going concern basis, Kotak Mahindra Bank said in a regulatory filing. The scheme would be subject to the approval of the respective shareholders and creditors of Sonata and BSS and the approval of the concerned National Company Law Tribunal (NCLT) and other regulatory authorities, it said. The combined net worth of Sonata and BSS is less than 2 per cent of the net worth of the bank, as on March 31, 2024, it said. Sonata and BSS Microfinance transaction is at an arm's length price based on valuation report obtained from an independent registered valuer, it said. BSS would issue and allot to the shareholders of Sonata shares in proportion of 1,931 shares of face value of Rs 10 each in BSS for every 10,000 shares of face value of Rs 10 each held by them in Sonata pursuant to scheme of amalgamation, it said.