Over 5% of CredAble will be acquired by Axis Bank for Rs55 crore, stock down 0.17%

3 Aug 2022 , 11:27 AM

On Tuesday, Axis Bank said that it will pay Rs55 crore to acquire a 5.1% share in the fintech platform CredAble.

For Rs55 crore in CredAble, the bank will purchase 8,921 equity shares, or 5.09%, with a face value of Rs10 apiece. By September 30, 2022, is when the transaction is anticipated to be finished, according to Axis Bank’s regulatory filing.

Through its network of financial institutions, the fintech platform CredAble provides working capital loans to vendors, distributors, dealers, and retailers. Additionally, it provides financial institutions with a technology license as a co-branding option.

CredAble, which was incorporated in July 2018, generated total revenue of Rs8.35 crore in 2021—2022 Its income was Rs2.46 crore in FY2021 and Rs27.64 crore in revenue in FY2019—2020.

Axis Bank stock decreased 0.17% from the previous close to settle at Rs729.20 per share on the BSE.