Axis Bank to buy Enam's financial services business for Rs2,064 crore
17 Nov 2010
Private sector lender Axis Bank will acquire the financial services business of Enam Securities for around Rs2,064 crore ($456 million), its chief executive Shikha Sharma said today.
The board of Axis Bank at its meeting today approved the acquisition of the financial services business of Enam Securities Private Limited, the company said.
Axis Bank will issue a total of 1,37,82,600 equity shares of face value Rs10 each (fully paid-up) in exchange for 24,18,000 equity shares of Rs10 each (fully paid up) held by the shareholders of Enam.
The exchange ratio (share entitlement ratio) has been fixed at 5.7 shares of Axis Bank for every one share of Enam Securities.
Axis Bank will merge the financial services business of Enam Securities with Axis Securities and Sales Ltd (ASSL), to create a financial services powerhouse.
"This merger is in line with Axis Bank's strategy of continuously expanding its product and service offerings to its customers in order to deepen its relationships and value differentiators.
We are delighted at the prospect of combining forces with Enam Securities, a pre-eminent name in investment banking and advisory field, to create an Indian financial services powerhouse at a time when India has occupied the world's centre-stage and is poised for years of rapid growth," said Shikha Sharma, managing director and CEO of Axis Bank.
