Kotak Bank acquires UP-based MFI Sonata Finance in Rs.537-Cr in an all-cash deal

Kotak Mahindra Bank Ltd is to acquire Uttar Pradesh-based Sonata Finance Pvt Ltd, a non-banking finance company (NBFC) with a micro finance institution (MFI) licence. Kotak would acquire 2,64,53,256 equity shares of Sonata, of face value INR 10, for about INR 537 crore in cash, constituting 100% of the issued and paid up capital of Sonata. Sonata has a loan portfolio of over INR 2,000 crore, over 508 branches with nearly 3,000 employees. It caters to economically weaker and underserved households. For FY22 Sonata posted a total income of INR 305.7 crore and a PAT of INR 13.6 crore.