Axis Bank hits 13-1/2-month high

BL Internet Desk | Updated on January 09, 2018 Published on November 13, 2017

Shares of Axis Bank hit 13-1/2-month high on capital raising plan. The stock jumped as much as 3.7 per cent to its highest since September 23, 2016.

Axis Bank had on Friday said it proposes to raise equity and equity-linked capital amounting to ₹11,626 crore from a set of marquee investors, including entities affiliated with Bain Capital Private Equity and the bank’s promoter Life Insurance Corporation of India (LIC).

India’s third-largest private sector bank, in a statement, said it proposes to issue equity for ₹9,063 crore and warrants for ₹2,563-crore.

"We see this as a big confidence sign, and the overhang of a likely capital raise (FY19) goes away,” analysts at Deutsche Bank wrote, raising their price target to Rs 620 from Rs 575 with “buy” rating.

“We now expect stressed asset recognition to accelerate as the quantum of capital infusion adequately covers the provisioning requirement,” analysts at Nomura said, raising their price target to Rs 640 from Rs 610 and reiterating their “buy" rating.

Sixteen of 48 analysts covering stock have “buy” or higher ratings, 18 have “hold", 14 have “sell” or lower ratings; their median price target is Rs 522.5, according to Thomson Reuters data.

Shares of the bank had gained about 21 per cent this year as of Friday's close.

(With inputs from Reuters)

Published on November 13, 2017

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