Axis Bank Limited MoU to set up Pan-India (National) Umbrella Entity (5630Q)
27 February 2021 - 2:05AM
UK Regulatory
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.
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