.2 minutes read Final Improved: Aug 12 2024|9:17 PM IST.Kotak Mahindra Count on Monday stated Sonata Money management Private Ltd and also BSS Microfinance Ltd, both wholly-owned subsidiaries of the banking company, at their particular panel meetings have actually permitted a program of combination.As per the system of amalgamation authorized on Monday, Sonata would merge with BSS Microfinance Ltd on a going problem manner, Kotak Mahindra Banking company stated in a governing filing.The system would certainly undergo the commendation of the respective shareholders as well as lenders of Sonata and BSS as well as the commendation of the interested National Company Legislation Tribunal (NCLT) and various other regulatory authorizations, it mentioned.The consolidated net worth of Sonata and also BSS is actually lower than 2 per cent of the net worth of the financial institution, as on March 31, 2024, it claimed.Sonata as well as BSS Microfinance transaction is at an arm's duration cost based on evaluation record secured from a private professional valuer, it pointed out.BSS would certainly release and also allocate to the investors of Sonata shares in portion of 1,931 shares of face value of Rs 10 each in BSS for every 10,000 allotments of face value of Rs 10 each stored through all of them in Sonata according to system of combination, it stated.The program of combinations is actually between 2 unpublicized subsidiaries of the bank and the bank is actually certainly not a party to the scheme, it stated.Therefore of the combination, it mentioned, there would be no improvement in the shareholding pattern of the bank.BSS as well as Sonata work as service reporters for the financial institution and give mini money management, unsecured tiny ticket financings and little value secured fundings to ladies borrowers as well as people on behalf of the financial institution.Sonata's net worth was actually Rs 389 crore while BSS' stood up at Rs 1,010 crore at the end of March 31, 2024.Kotak Mahindra Banking company introduced acquisition of Sonata Financing in February 2023. Disclosure: Entities handled due to the Kotak family possess a notable holding in Service Criterion Pvt Ltd. First Published: Aug 12 2024|9:17 PM IST.