JSA advised Creation Investments Social Ventures Fund II LP in its exit from Sonata Finance Private Limited

  • Deal
  • April 4, 2024

JSA advised Creation Investments Social Ventures Fund II LP (Creation), a Delaware-based alternative investment fund, with respect to transfer of Creation’s entire shareholding of 22.3% in Sonata Finance Private Limited (Sonata Finance). Sonata Finance is a NBFC engaged in micro financing to economically weaker sections. The exit by Creation was part of the larger transaction of acquisition of 100% of Sonata Finance by Kotak Mahindra Bank Limited (Kotak) for Rs. 537 crores. With this acquisition, Sonata Finance has become a wholly owned subsidiary of Kotak. Sonata Finance operates in 10 states through 549 branches and has assets under management worth Rs 2,620 crores as on December 31, 2023.

JSA also advised Creation on the implications of an injunction granted in favour of Small Industries Development Bank of India (SIDBI) by the High Court of Madras on Creation’s shareholding in Sonata Finance and had structured the complexity around this issue as well.

Deal value: Approx. INR 537 crores

Our Transaction Team Comprised Partner – Lalit Kumar, Bharati Joshi, and Amandeep Singh Virk.

Our Disputes Team Comprised Partner – Dheeraj Nair, Vinod Kumar, and Anjali Anchayil, Senior Associate – Prashaanth B and Associate – Ridhima Sharma.