.2 min read Last Upgraded: Aug 12 2024|9:17 PM IST.Kotak Mahindra Bank on Monday stated Sonata Money management Private Ltd and BSS Microfinance Ltd, each wholly-owned subsidiaries of the banking company, at their corresponding board conferences have actually approved a plan of combination.Based on the scheme of amalgamation authorized on Monday, Sonata would merge along with BSS Microfinance Ltd on a going concern basis, Kotak Mahindra Bank pointed out in a regulative submission.The program would certainly be subject to the approval of the corresponding shareholders and also financial institutions of Sonata and also BSS and also the commendation of the worried National Business Rule Tribunal (NCLT) and also various other regulative authorities, it mentioned.The consolidated net worth of Sonata as well as BSS is actually less than 2 per cent of the total assets of the financial institution, as on March 31, 2024, it stated.Sonata and BSS Microfinance transaction goes to an upper arm's size rate based upon valuation file gotten coming from an individual authorized valuer, it claimed.BSS would certainly issue and also allocate to the shareholders of Sonata shares in portion of 1,931 shares of stated value of Rs 10 each in BSS for every single 10,000 portions of stated value of Rs 10 each held by them in Sonata according to scheme of combination, it stated.The scheme of combinations is in between pair of unrecorded subsidiaries of the financial institution and the bank is actually certainly not a celebration to the system, it mentioned.Consequently of this particular combinations, it stated, there would be no improvement in the shareholding pattern of the banking company.BSS as well as Sonata function as service correspondents for the bank and also give small financing, unprotected small ticket finances and also small market value safeguarded fundings to girls consumers and individuals in behalf of the lender.Sonata's net worth was actually Rs 389 crore while BSS' stood at Rs 1,010 crore by the end of March 31, 2024.Kotak Mahindra Financial institution announced achievement of Sonata Financing in February 2023. Disclosure: Companies managed by the Kotak loved ones have a significant holding in Organization Specification Pvt Ltd. Very First Posted: Aug 12 2024|9:17 PM IST.