Axis Bank Limited raises Rs 10,000 crore through its Qualified Institutions Placement
Mumbai/IBNS: Axis Bank Limited, one of India’s largest private sector banks, recently announced that it has raised Rs 10,000 crore through its Qualified Institutions Placement (QIP).
The bank had announced the opening of its QIP in early August to raise funds to enhance its capital adequacy.
The fund raising was approved by the shareholders of the Bank at the 26th Annual General Meeting held on July 31, 2020.
Despite a challenging macro-economic environment, the placement has witnessed strong reception from the global and domestic investor community, including several large foreign portfolio investors, domestic mutual funds and insurance companies, the bank said in a release.
The deal was oversubscribed with the aggregate final transaction size being Rs 10,000 crores.
The QIP issuance was done at a price of Rs 420.10 per Equity Share.
The QIP issuance price of Rs 420.10 per Equity Share of Rs. 2 each of the bank is at a discount of 5 per cent to the floor price of Rs 442.19 per Equity Share of Rs. 2 each of the bank, determined based on the pricing formula, as prescribed under Regulation 176(1) of the SEBI ICDR Regulations.
Amitabh Chaudhry, MD & CEO, Axis Bank said, “We believe that the bank is well placed to leverage all the possible growth opportunities that will come in as the economy opens up and is in a strong position to combat the challenges that emanate from the Covid-19 pandemic crisis.”
Axis Bank is the third largest private sector bank in India, in terms of total assets.