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.
The scheme of amalgamation is between two unlisted subsidiaries of the bank and the bank is not a party to the scheme, it said.
As a consequence of this amalgamation, it said, there would be no change in the shareholding pattern of the bank.
BSS and Sonata act as business correspondents for the bank and provide micro finance, unsecured small ticket loans and small value secured loans to women borrowers and individuals on behalf of the lender.
Sonata’s net worth was Rs 389 crore while BSS’ stood at Rs 1,010 crore at the end of March 31, 2024.
Disclosure: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd
First Published: Aug 12 2024 | 9:17 PM IST
