Vallabh Bhanshali, chairman of the Enam Group, speaks to Rajesh Bhayani. Edited excerpts:
What prompted you to sell the Enam stake?
If we have understood the future, investment banking goes hand in hand with commercial banking. Along with capital, client companies’ debt requirement will also have to be fulfiled. This can be met with the deal going through. More important, both of us have a cultural match, something that is rare to get.
Was that the driving force?
There is a lot of synergy. That gave comfort. Axis also agreed to keep all our employees. Everything at Enam remains the same, including the chief executive.
Have you got a good valuation?
A fair valuation. It’s a share-swap deal; we have not asked for cash compensation. While we are a leader in the IPO market, with 1,100 branches and expertise in debt, derivatives and M&A advisory, Axis’ valuation has been fair.
What will be the focus area of the remaining Enam now?
Our portfolio management and investment business remains with us. Mutual funds could be another growth area. We did not think of that much while negotiating the deal. Now we will do that.
You must have looked at other opportunities before deciding to go with Axis
Not really; such a perfect cultural fit is not easy to get. At some fine moment, we discussed if we can work dynamically and that discussion moved on.
Did succession issues at Enam trigger the deal?
Not at all. We have been a professionally managed company and finding professionals was never an issue for Enam. We believe control is not growth, intelligence is growth. In short, this is a win-win deal.