Axis Bank has reworked the exchange ratio in the Enam deal, which has been cleared by the Reserve Bank of India, from 5.7:1 to 5:1. In other words, Enam shareholders will receive 5 shares of Axis Bank for each Enam share as against 5.7 earlier.
The bank’s board approved the reassessment of valuation in its Friday meeting. Besides the Enam deal, the board approved the sale of a 25% plus one share stake in Axis Mutual Fund to Schroders for an undisclosed amount. The board also took into account the results – the bank’s net profit for the fourth quarter rose 25% to Rs 1,277 crore from Rs 1,020 crore in the previous year. The full year profit too rose by 25% to Rs 4,242 crore.
Shikha Sharma, MD & CEO, Axis Bank, said on Friday that the private sector lender had received RBI’s clearance for the Enam deal and was now awaiting a court approval. “The swap ratio was reviewed keeping in mind prevailing market conditions and having regard to underlying commercial factors,” said Sharma.
Source: Times of India