Axis Bank shares drop 4%; lender calls report on Rs 10,000 crore QIP speculative, incorrect

Axis Bank, whose shares fell 4 per cent on Wednesday, said a media report suggesting the private bank's intention to tap market is purely speculative and factually incorrect. The Hindu Business Line had earlier suggested that the bank was looking to raise Rs 10,000 crore via QIP.

"In this regard, we would like to inform you that the article with regard to Axis Bank tapping the market to raise funds through a Qualified Institutional Placement (QIP) in the coming weeks and a decision to this effect may be taken at the board meeting ahead of the results is purely speculative and factually incorrect.

You are requested to take note of the above and arrange to bring the same to the notice of all concerned," Axis Bank informed stock exchanges.

The stock fell 4.38 per cent to Rs 994.40 on BSE. With Wednesday's fall, the stock has fallen 1.31 per cent in the one-month period. This was better than a fall of 2.81 per cent for HDFC Bank, 3.58 per cent for ICICI Bank and 1.6 per cent drop for IndusInd Bank. 

The Hindu Business Line report had cited two people familiar with the matter saying that Axis Bank was looking to raise funds in the coming week. As per the report, the private lender could have raised Rs 10,000 crore or more via QIP mode and suggested that a decision may be taken in the board meeting ahead of the second quarter results. The investment bankers, the report said,  would be appointed after the board resolution is passed, the report suggested.

The approval would be for a larger amount, the report had suggested adding that the final amount to be raised would be decided based on the feedback received during roadshows.

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