Kotak Mahindra Bank opposes Subhiksha's merger

Beleaguered retail chain Subhiksha on Friday said Kotak Mahindra Bank, which had lent Rs 40 crore (Rs 400 million) to it, on Friday objected to merger of the company with city-based Blue Green Constructions and Investments Ltd.

Subhiksha managing director R Subramanian in a statement, said Kotak Mahindra Bank filed an objection to the merger in the Madras High Court.

The company had earlier filed various documents as directed by the HC. The HC has adjourned the hearing to April 28, he added.

In June 2008, Subhiksha planned to acquire 23 per cent stake in Blue Green Constructions for Rs 2.5 crore (Rs 25 million). But ICICI Venture, promoted by Azim Premji, which has 10 per cent stake in Subhiksha, objected to the move.