Axis Bank shares in focus as private lender looks to raise up to Rs 4,000 crore via NCDs

Axis Bank Ltd shares are in focus on Monday after the bank proposed raising funds by issuing fully paid, senior, rated, listed, unsecured, taxable, redeemable, long term non-convertible debenture (Series –7), with a base issue size of Rs 1,000 crore and green shoe option to retain oversubscription of Rs 3,000 crore, thereby aggregating up to Rs 4,000 crore

The Axis Bank board had in April 2023 authorised raising of funds in Indian/foreign currency by issue of debt instruments including but not limited to long term bonds, non-convertible debentures, perpetual debt instruments, AT 1 Bonds, infrastructure bonds and Tier II capital bonds or such other debt securities as may be permitted under RBI guidelines from time to time up to an amount of Rs 35,000 crore in terms of Section 42 of the Companies Act, 2013, the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 and the Listing Regulations, subject to the approval of the members of the Bank at the 29th Annual General Meeting of the Bank (“AGM”).

In July 2023, the bank shareholders had passed the resolutions as set out in the notice convening the AGM dated June 16, 2023, with the requisite majority, at their 29th AGM held on July 28.

Axis Bank stock outlook

Religare in a March 1 note said that the Axis Bank stock has been in a primary uptrend from last more than 8 months, forming series of higher high-lows with gradual rise in volumes. It has formed an elevated base around the 20-weekly EMA, which also coincides with rising support trend line. "Following price action and uptick in volumes indicates stock to resume its prevailing trend and inch higher to surpass its previous swing high," it said.

The brokerage, which has a target of Rs 1,185 on the stock, said with fresh cash accumulation and shorts being trapped, the stock may witness good short coverings. Axis Bank shares rose 0.92 per cent to close at Rs 1,096.35 on Saturday in a special trading session.