Private sector lender Axis Bank is looking at picking up 49% stake in Enam Institutional Broking, sources have told CNBC-TV18 in an exclusive. The Axis-Enam merger ratio is at 5:7:1 and the deal is said to be valued at around Rs 2,100 crore.
The merger between Axis Bank and Enam will see the latter becoming a 100% subsidiary of the former with Manish Chokhani touted to be the CEO of the new arm. Sources said, Vallabh Bhansali has also been asked to join the board of Axis Bank.
The merger will not impact Enam’s Infra Fund while Enam Securities will continue to run for another 24-36 months, sources said.
Enam’s shareholding pattern has their employees holding around 7-8%. Vallabh Bhanshali owns 22%. Enam promoters will get a 3.7% stake in the bank as a consideration.
Enam’s FY11 profit after tax (PAT) is at around Rs 120 crore. Their FY10 PAT was at around Rs 100 crore.
source: moneycontrol.com.
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