Money & Banking

Axis Bank’s QIP oversubscribed, raises ₹12,500 cr

Mumbai | Updated on September 26, 2019 Published on September 26, 2019

Private sector lender Axis Bank, on Thursday, said its qualified institutional placement (QIP) was oversubscribed, with the aggregate final transaction size being ₹12,500 crore.

“We understand that the transaction is the largest-ever QIP by a private sector issuer in India. Despite a challenging macro-economic and market environment, the placement has witnessed strong reception from the global and domestic investor community,” it said in a statement.

The bank, which is the country’s third-largest private sector lender, had announced the opening of its QIP last week.

The QIP issuance was done at a price of ₹629 per share at a discount of 1.44 per cent over the closing price of the issue opening date – September 19. The transaction was anchored by several large marquee foreign portfolio investors, domestic mutual funds, and insurance companies.

In a regulatory filing, the bank said that its committee of whole-time directors has approved the allotment of 19.87 crore shares. The paid-up capital of the bank has now increased to ₹ 563.8 crore, comprising 281.9 crore shares of ₹2 each, against the earlier paid-up capital of ₹524.05 crore consisting of 262.02 crore shares of ₹2 each. The bank’s shareholding now comprises the promoter and promoter group holding 16.61 per cent stake, and the public holding increasing to 83.39 per cent.

“We are excited about the opportunities that would be created through this capital raise. We will strive to ensure that we continue our growth journey and keep delivering the best value to our customers, shareholders and investors consistently and on a sustainable basis,” said Amitabh Chaudhry, Managing Director and CEO, Axis Bank.

Published on September 26, 2019
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