Axis Bank, the country's fourth largest lender, Wednesday said it is to acquire investment banking and securities unit of Enam Financial, a closely held firm, in an all-stock transaction valued at Rs.2,067 crore.
"We have done exchange of shares and are not walking away with any cash. Our entire balance sheet and network is getting transferred," Vallabh Bansali, co-founder and chairman of Enam Financial Consultants, told reporters here.
Enam shareholders will get a 3.3 percent stake in Axis Bank. Vallabh Bansali will be a director on Axis Bank board and Enam Securities director Manish Chokhani will be CEO of the new entity.
Shikha Sharma, managing director and chief executive officer of Axis Bank, said the name of the new entity has not been decided yet. "There is no overlapping of business and the deal offers a great synergy," Sharma said.
Enam Securities is an arm of Enam Financial, which is controlled by four families. The deal does not include portfolio management and asset management businesses of Enam.
Axis Bank will swap 5.7 shares for each one of closely held Enam share.