Axis Bank said that it will acquire 8,921 equity shares of face value of Rs 10 each, representing 5.09% stake, of Equentia SCF Technologies (CredAble) for a total cash consideration of Rs 55 crore.
CredAble enables working capital financing across corporate ecosystem of vendors, distributors, dealers and retailors through its network of financial institutions via its proprietary technology (platform) as well as licensing its technology to financial institutions as a co-branding solution. The company had recorded a turnover of Rs 8.35 crore in FY2022.
The bank expects to complete the transaction by 30 September 2022.
Axis Bank is the third-largest private sector bank in India. As on 30 June 2022, the bank had a network of 4,759 domestic branches and extension counters situated in 2,702 centres compared to 4,600 domestic branches and extension counters situated in 2,628 centres as at end of 30 June 2021.
The private lender's net profit surged 91% to Rs 4,125.26 crore on 12.2% increase in total income to Rs 21,727.61 crore in Q1 FY23 over Q1 FY22.
The scrip shed 0.12% to currently trade at Rs 729.35 on the BSE.
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