Private sector Kotak Mahindra Bank said it will acquire BSS Microfinance for Rs 139.2 crore to reach a wider customer base.
“The bank has executed a share purchase agreement for acquisition of 99.49 per cent (equivalent to 2,65,91,856 equity shares of Rs 10 each) of the equity shareholding of BSS Microfinance Private Limited from its existing shareholders,” Kotak Mahindra Bank said in an exchange filing.
BSS Microfinance is a non-banking financial company, classified as an NBFC-MFI.
The transaction is subject to obtaining all necessary regulatory and other approvals, including from the Reserve Bank, Kotak Mahindra Bank said.
The acquisition process is expected to be completed in about 3-4 months for a cash consideration of Rs 139.2 crore, it added.
Kotak Mahindra Bank said the acquisition is towards its “long term need to embrace financial inclusion as well as to cater the needs of weaker sections.” Total turnover of BSS Microfinance in 2015-16 was Rs 49.5 crore.
As of June 30, 2016, company’s loan portfolio was Rs 483 crore, with networth of Rs 72.9 crore and employee strength of 728.
Kotak Mahindra Bank’s stock closed 0.82 percent higher at Rs 778.75 on BSE.