Axis Bank launches QIP, fixes floor price at ₹442.19

Private sector lender Axis Bank on Tuesday launched its qualified institutional placement with a floor price of ₹442.19 apiece.

“The committee of Whole-Time Directors of the Bank, at its meeting held on August 4 has decided to open the Issue for receiving bids,” it said, adding that the committee also approved and adopted the Preliminary Placement Document.

It would also offer a discount of five per cent on the floor price.

The stock on Tuesday closed at ₹428.90, up 2.8 per cent, on the BSE.

“The meeting of the committee will be held on Monday, August 10, 2020, to consider and approve, among other things, the issue price for the equity shares proposed to be issued,” it said in a regulatory filing.

The Bank is looking to raise about ₹10,000 crore of funds and had sought shareholder approval at its recent annual general meeting.

It is the latest amongst private sector lenders to tap the market for funds amidst growing economic uncertainty.

Amitabh Chaudhry, Managing Director and CEO, Axis Bank after the first quarter results had said the lender is well capitalised with a capital adequacy ratio of 17.47 per cent and CET 1 of 13.50 per cent as on June 30, 2020.

“However, we continually evaluate various capital raising initiatives from time to time for our business,” he had told reporters, adding that it has an enabling resolution from the board, pending approval from our shareholders that would allow it to raise funds over the next one year.