A recent press report said that the board of Axis Bank has approved the merger of the financial services business of Enam Securities Private Ltd (Enam) with itself by transferring the business into the bank’s wholly owned subsidiary.
According to the notice issued to the BSE the bank has said that it will merge Enam Financial Services through a share swap, in the ratio of 5.7 equity shares of Axis Bank for every one equity Enam share, as announced earlier.
Reports said that after the completion of the share swap transaction, Axis Bank has decided to sell Enam Financial Services to Axis Securities and Sales Ltd (ASSL), a wholly owned subsidiary of the bank, for approximately Rs 274 crore, which represents the book value of the Enam Financial Services. The revised merger scheme was prepared in fulfillment with the conditions prescribed by the Reserve Bank of India.
Reports also said that the deal continues to be a share swap transaction. As Enam Financial Services will be merged with ASSL, the bank will sell the business to ASSL at its book value. The bank offers various products and services in the country and is familiar for its loan products such as Axis home loan, Axis Personal loan, Axis car loan etc.