Axis Bank Limited MoU to set up Pan-India (National) Umbrella Entity (5630Q)

TIDMAXB TIDMAXBA

RNS Number : 5630Q

Axis Bank Limited

26 February 2021

AXIS/CO/CS/573/2020-21

26(th) February 2021

D e ar 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,            Mopay Services Private Limited 
      details in brief such as              ("Mopay") 
      size, turnover etc. 
                                            Mopay was incorporated on 19(th) 
                                            February 2021. 
b.   Whether the acquisition               This transaction does not constitute 
      would fall within related             a related party transaction. 
      party transaction(s) and              The Bank's promoter / promoter 
      whether the promoter/ promoter        group does not hold any interest 
      group/ group companies have           in Mopay. 
      any interest in the entity 
      being acquired? If yes, 
      nature of interest and details        Axis Bank and its subsidiaries 
      thereof and whether the               in the normal course of business 
      same is done at "arm's length"        may have business dealings with 
                                            Mopay at an arm's length. 
    ------------------------------------  ------------------------------------------- 
c.   Industry to which the entity          Subject to approval from the 
      being acquired belongs                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    To participate, subject to regulatory 
      (including but not limited            approvals, in the setting up 
      to, disclosure of reasons             of the NUE through equity stake 
      for acquisition of target             in Mopay. 
      entity, if its business 
      is outside the main line 
      of business of the listed 
      entity) 
    ------------------------------------  ------------------------------------------- 
e.   Brief details of any governmental          The approvals which are required 
      or regulatory approvals                    are inter alia: 
      required for the acquisition 
                                                 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            December 2021, subject to regulatory 
      completion of the acquisition         approval. 
    ------------------------------------  ------------------------------------------- 
g.   Nature of consideration               Cash 
      - whether cash consideration 
      or share swap and details 
      of the same 
    ------------------------------------  ------------------------------------------- 
h.   Cost of acquisition or the            Rs. 1.00 billion 
      price at which the shares 
      are acquired 
    ------------------------------------  ------------------------------------------- 
i.   Percentage of shareholding            20% stake in Mopay subject to 
      / control acquired and /              regulatory approvals 
      or number of shares acquired 
    ------------------------------------  ------------------------------------------- 
j.   Brief background about the            Date of Incorporation: February 
      entity acquired in terms              19, 2021 
      of products/line of business 
      acquired, date of incorporation,      Subject to regulatory approvals, 
      history of last 3 years               Mopay intends to carry on the 
      turnover, country in which            business of managing and operating 
      the acquired entity has               new payment systems in retail 
      presence and any other significant    space offering payments, remittance 
      information (in brief)                and other technology & data 
                                            services 
 
                                            History of last 3 years turnover: 
                                            Not Applicable. 
 
                                            Country of Presence- India. 
    ------------------------------------  ------------------------------------------- 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCSEFFIMEFSESE

(END) Dow Jones Newswires

February 26, 2021 10:05 ET (15:05 GMT)