Asia Bizz: Hold Rating Of Axis Bank Target Of Rs. 1738, Maintained By KRChoksey
Axis Bank share price:Â KRChoksey has maintained the hold rating of Axis Bank at Rs. 1738, in the market, which was shown in the November 8th report. It has also been reported that Axis Bank has officially acquired ENAM’s securities’ prominent businesses, which include, investment, banking and institutional broking (IB), retail broking and distribution of financial products.
This swap deal has cost the bank around Rs.2067 Crore, and as per the deal Axis will be paying 5.7 shares for every one share of ENAM. More reports state that ENAM’s primary management personnel have signed a 5 year non-corporative deal for investment banking, equity broking & financial distribution business in the country.
There has been an equity dilation 3.3% during the merger of the equity capital and during the financial year 2011, there dilution will be around 3.4%. To forecast that this merger will concentrate on earning prospects in a tenure of 15-18 months, as they would be focusing on this merger from a mid term to a long term deal.