Axis Bank has bought out Enam Securities, the broking arm of Enam Financial, in a stock deal that values the latter at Rs 2100 crore
Axis Bank has bought the investment banking and equities units of Enam Securities for $456 million.
The merger will not impact Enam’s Infra Fund while Enam Securities will continue to run for another 24-36 months, sources said.
The all-stock transaction will see unlisted Enam’s shareholders take a 3.3 percent stake in Axis Bank, India’s third-largest private sector lender with a market value of about $13 billion, and may spur further dealmaking in the cut-throat brokerage and investment banking industry.
Enam’s shareholders, who founded the firm in 1984, will receive 5.7 Axis shares for each Enam share, the companies said. Axis was advised on the deal by Macquarie. Shares in Axis Bank have surged 48 percent this year, outpacing the 42 percent rise in the banking sector index and the 14 percent gain in the broader market.