The country’s third largest private lender, Axis Bank Ltd., on Thursday said that the bank will raise up to ₹15,000 crore. Its board has approved the fund-raising through the issuance of various instruments.
The bank will now raise the money through issuance of equity shares or depository receipts, or any other convertible securities linked to equity shares, Axis Bank said in an exchange filing.
On Thursday, Axis Bank said it will raise the money through a qualified institutions placement (QIP) or issuance of American depository receipts (ADRs) or a global depository receipts (GDRs) programme. The bank may also adopt the preferential allotment route to raise the capital. The mode of capital raising will be subject to the approval of the board and the bank’s shareholders at the ensuing 26th Annual General Meeting of the bank.
At 11:15 am, Axis Bank was trading at ₹424 down 2.14% from its previous close, while the benchmark index, Sensex gained 0.93% to 35745.39. From the beginning of the year, Axis Bank lost 44% against a drop of 13% in the benchmark index, Sensex. From the March lows, Axis Bank gained 49% and Sensex was up 36%.
“Some private equity players, including Carlyle, KKR and Fidelity, have shown interest to buy Axis Bank shares in the proposed QIP. Even Bain Capital, which already holds shares in Axis Bank, is keen to increase its investment in the bank,” said a person aware of the matter.
With its latest move, Axis Bank has joined the trend of equity capital raising, which is being followed by many other banks to bolster their capital buffers for the future.