Axis Bank Acquired Enam Securities

India’s  third largest private sector bank, Axis Bank on 17 November 2010 announced its acquisition of the investment banking arm of Enam Securities for around Rs.2,067 crore. According to the laid proposition Enam Securities will demerge its investment banking, institutional equities, retail equities and related businesses such as distribution of financial products, NBFC to a wholly-owned subsidiary of Axis Bank. Axis Bank is also required to demerge its investment banking business into the wholly-owned subsidiary. The board of Axis Bank proposed to bring on board Vallabh Bhansali, Co-founder and Chairman of Enam, as an independent director. Manish Chokhani will accept the charge as the Managing Director and CEO of the newly proposed entity and Jagdish Master will continue to provide guidance as a board member of the wholly-owned subsidiary. Enam shareholders pursuant to the proposed scheme will receive shares of Axis Bank in the ratio of 5.7 shares of Axis Bank for every one share held in Enam.

The proposed scheme is subject to approvals from the authorities such as the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI) and the High Courts of Gujarat and Mumbai as well as approval of stakeholders.

The proposed transaction is expected to 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.