REG - Axis Bank Ltd Axis Bank Ltd (144A) - MoU to set up Pan-India (National) Umbrella Entity

Axis BankAnnouncement

26/02/2021 15:05

RNS Number : 5630Q
  
Axis Bank Limited
  
26 February 2021
  
 

AXIS/CO/CS/573/2020-21
26thFebruary 2021
 
Dear Sir(s),
 
Sub.: Disclosure under Regulation 30 read with Para A of Part A of Schedule III of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, as amended
 
We wish to inform you that Axis Bank Limited ("the Bank") has entered into a Memorandum of Understanding (MoU) dated 25th February 2021 amongst members of the consortium seeking to set up a Pan-India (National) Umbrella Entity ("NUE") for Retail Payments, subject to requisite regulatory approvals. 
 
The details as required pursuant to Regulation 30 read with Para A of Part A of Schedule III of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, as amended read with SEBI circular no. CIR/CFD/CMD/4/2015 dated 9th September 2015, are provided in Annexure A.
 
You are requested to take note of above and arrange to bring it to the notice of all concerned.
 
Yours Sincerely,
For Axis Bank Limited
 
Girish V. Koliyote
Company Secretary
Encl: As above

 

 
Annexure A
 




a.


Name of the target entity, details in brief such as size, turnover etc.


Mopay Services Private Limited ("Mopay")
 
Mopay was incorporated on 19thFebruary 2021.




b.


Whether the acquisition would fall within related party transaction(s) and whether the promoter/ promoter group/ group companies have any interest in the entity being acquired? If yes, nature of interest and details thereof and whether the same is done at "arm's length"


This transaction does not constitute a related party transaction. The Bank's promoter / promoter group does not hold any interest in Mopay. 
 
 
Axis Bank and its subsidiaries in the normal course of business may have business dealings with Mopay at an arm's length.




c.


Industry to which the entity being acquired belongs


Subject to approval from the Reserve Bank of India ("RBI"), the main business of Mopay would be to create and operate Pan-India retail payment systems, as would be allowed/authorized by RBI.




d.


Objects and effects of acquisition (including but not limited to, disclosure of reasons for acquisition of target entity, if its business is outside the main line of business of the listed entity)


To participate, subject to regulatory approvals, in the setting up of the NUE through equity stake in Mopay.




e.


Brief details of any governmental or regulatory approvals required for the acquisition


The approvals which are required are inter alia:
 
i.    Approval required by Axis Bank as per the RBI Master Direction on Financial Services provided by Banks, 2016 
ii.    RBI Authorisation required by Mopay as per the Framework for authorisation of pan-India Umbrella Entity for Retail Payments




f.


Indicative time period for completion of the acquisition


December 2021, subject to regulatory approval.




g.


Nature of consideration - whether cash consideration or share swap and details of the same


Cash




h.


Cost of acquisition or the price at which the shares are acquired


Rs. 1.00 billion




i.


Percentage of shareholding / control acquired and / or number of shares acquired


20% stake in Mopay subject to regulatory approvals




j.


Brief background about the entity acquired in terms of products/line of business acquired, date of incorporation, history of last 3 years turnover, country in which the acquired entity has presence and any other significant information (in brief)


Date of Incorporation: February 19, 2021
 
Subject to regulatory approvals, Mopay intends to carry on the business of managing and operating new payment systems in retail space offering payments, remittance and other technology & data services
 
History of last 3 years turnover: Not Applicable.
 
Country of Presence- India.




 

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