Axis Bank on Tuesday announced that it has raised Rs 10,000 crore through a qualified institutional placement (QIP) of shares on August 10. The private sector lender said that QIP saw robust reception from global and domestic investors including several large foreign portfolio investors, domestic mutual funds and insurance firms even as the macroeconomic environment remained challenging. Axis Bank didn't disclose the names of the investors.
"Committee of Whole-Time Directors of the Bank (the "Committee"), at its meeting held today, has considered and approved the allotment of 238,038,560 Equity Shares at a price of Rs. 420.10 per Equity Share (including a premium of Rs. 418.10 per Equity Shore). (which takes into account a discount of 5.00%), to the floor price of Rs. 442.19 per Equity Share, aggregating to Rs. 100,000 million, to successful eligible Qualified Institutional Buyers," Axis Bank said in an exchange filing.
"Pursuant to the allotment of Equity Shares in the Issue, the paid-up equity share capital of the Bank stands increased from Rs. 5,64,40,54,948 (2,82,20,27,474 equity shares of Rs. 2/- each) to Rs. 6, 12,01,32,068 (3,06,00,66,034 equity shares of Rs. 2/- each)," it added.
The shareholders of the private sector lender had approved the proposal of fundraising at the 26th Annual General Meeting (AGM) held on July 31, 2020. The funds raised would be deployed towards boosting bank's capital adequacy and other corporate needs.
Shares of Axis Bank were trading at Rs 438.55, up 7.60 points, or 1.76 per cent on NSE at the time of reporting.Also read: Coronavirus update: India records 53,601 new cases in 24 hours, death toll reaches 45,257