Axis-Enam Deal...Close watch
As part of the deal, Enam Securities will demerge its investment banking, institutional equities, retail equities and related businesses such as distribution of financial products, non-banking financial company (NBFC), etc, to a wholly-owned subsidiary of Axis Bank pursuant to a scheme of arrangement. Axis Bank will also demerge its investment banking business into the wholly-owned subsidiary.
Enam shareholders will receive shares of Axis Bank in the ratio of 5.7 shares of Axis Bank for every one share held in Enam, resulting into about 3.3% equity stake of Axis Bank on the enlarged capital. The proposed scheme is subject to approvals from respective shareholders and approval from the authorities like Reserve Bank of India (RBI), Sebi and the High Courts of Gujarat and Mumbai.
The proposed transaction would create one of India's leading financial services powerhouses combining the investment banking and equities franchise of Enam Securities with the dominant debt capital markets and commercial banking franchise of Axis Bank. The strategic objective is to create a complete bouquet of financial products and services for corporate, institutional and individual clients that will enhance the ability of the combined entity to better serve client needs in a seamless manner across product categories and geographies.
Enam and Axis Bank will continue their respective 'buy side' and investment management businesses separately. These units do not form part of this transaction.
Following this, Enam will become an Axis Bank subsidiary, headed by Enam Director Manish Chokani.
As part of the deal, Enam Securities will demerge its investment banking, institutional equities, retail equities and related businesses such as distribution of financial products, non-banking financial company (NBFC), etc, to a wholly-owned subsidiary of Axis Bank pursuant to a scheme of arrangement. Axis Bank will also demerge its investment banking business into the wholly-owned subsidiary.
Enam shareholders will receive shares of Axis Bank in the ratio of 5.7 shares of Axis Bank for every one share held in Enam, resulting into about 3.3% equity stake of Axis Bank on the enlarged capital. The proposed scheme is subject to approvals from respective shareholders and approval from the authorities like Reserve Bank of India (RBI), Sebi and the High Courts of Gujarat and Mumbai.
The proposed transaction would create one of India's leading financial services powerhouses combining the investment banking and equities franchise of Enam Securities with the dominant debt capital markets and commercial banking franchise of Axis Bank. The strategic objective is to create a complete bouquet of financial products and services for corporate, institutional and individual clients that will enhance the ability of the combined entity to better serve client needs in a seamless manner across product categories and geographies.
Enam and Axis Bank will continue their respective 'buy side' and investment management businesses separately. These units do not form part of this transaction.
Following this, Enam will become an Axis Bank subsidiary, headed by Enam Director Manish Chokani.