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  Axis Bank to raise Rs 11,626 crore from investors

By PN Team Posted on Nov, 11 2017

 

Private sector Axis Bank on Friday said it proposes to raise Rs 11,626 crore by selling shares and warrants to a group of investors including Bain Capital and Life Insurance Corporation (LIC).

The board of the bank approved the sale of up to 17.2 crore shares at Rs 525 each and 4.5 crore convertible warrants at Rs 565 each on a preferential basis, Axis Bank said in a filing to the stock exchanges.

The fund raising will lead to 9 per cent stake sale, it said. It will "bolster the capital adequacy of the bank, thereby providing growth capital for the core business ... and its subsidiaries," it said.

The bank will raise Rs 9,063 crore from the share sale and Rs 2,563 crore from the sale of warrants. Entities affiliated with Bain Capital propose to invest Rs 6,854 crore while LIC will be issued around 3.02 crore equity shares on a preferential basis to help the bank raise over Rs 1,583 crore, it said.

This will lead to 9 per cent stake sale for Rs 11,625 crore. Bain capital (4.8 per cent stake), Capital group (3 per cent stake) and LIC (1.2 per cent stake) are the main investors. Following the board approval, the bank intends to put the fund-raising plan to a shareholders vote on December 8, it said. 

(DC)

 

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