Kotak acquires Sonata Finance in an all-cash deal worth 537 crores
Kotak Mahindra Bank announced that it had purchased Sonata Finance for 537 crore in an all-cash transaction. Sonata Finance will become a completely owned subsidiary of the bank after regulatory and other licences are obtained, according to the company.
"The bank has completed a binding share purchase agreement to acquire 100% of Sonata Finance Private Limited's equity shares," the lender said in a news release.
Sonata Finance, according to Kotak, would create a solid foundation for the bank to become a prominent participant in the financial inclusion segment, catering to economically disadvantaged and underserved households in a commercially viable manner.
Sonata Finance has Rs 1,903 crore in assets under management as of December 31, 2022, serving 900,000 customers through a network of 502 locations in 10 states. The transaction allows the bank to expand its operations in rural and semi-urban markets throughout India's northern states.
