India's Kotak Mahindra to buy microfinance lender Sonata Finance for $65 mln
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Loading... - Shyla Reddy
- 10 Feb 2023
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India's Kotak Mahindra Bank (KTKM.NS) said on Friday it would acquire Sonata Finance Pvt Ltd for 5.37 billion rupees ($65.04 million) in an all-cash deal, in a push to strengthen lending to economically weaker and underserved households.
The private sector bank will acquire 26.45 million equity shares of microfinance company Sonata, of face value 10 rupees each fully paid up, for a total consideration of approximately 5.37 billion rupees, the private lender said in an exchange filing.
With this, the bank will acquire 100% shareholding in Sonata.
This is not the first time that Kotak is making an entry in the microfinance space. In 2016, the bank had acquired BSS Microfinance in an all-cash deal for 1.39 billion rupees.
Sonata's acquisition provides a strong and vintage platform to enable the bank to become a significant player in the financial inclusion segment, said Kotak.
Sonata's network of 502 branches across 10 states is complementary to bank's microfinance branch network, it added. Read More…
