Axis Bank has said its Qualified Institutions Placement (QIP) has been oversubscribed as it received a good response from domestic as well as global investors. The private lender claimed to have raised Rs 12,500 crore through QIP to enhance its capital adequacy. "The transaction is the largest ever QIP by a private sector issuer in India," the bank told the stock exchanges.
"The bank's committee, at its meeting held on Thursday, decided to close the issue and has accorded its consent for the issue of over 19 crore equity shares of Rs 2 each at a price of Rs 629 per equity share," the bank said in a statement. It added that despite a challenging macro-economic and market environment, the placement of the Axis Bank QIP had witnessed strong reception.
Axis Bank had announced the opening of its QIP last week after it was approved by the lender's shareholders through a postal ballot on August 21. "The reception for the QIP is an endorsement of Axis Bank and its strong fundamentals. We are excited about the opportunities that would be created through this capital raise," said Amitabh Chaudhry, MD & CEO, Axis Bank.
Axis Bank, the country's third-largest private sector bank, had clocked 95 per cent year-on-year growth in its net profit at Rs 1,370 crore for the first quarter ended June 30. The bank's net interest income, or the core income a bank earns by giving loans, had grown 13 per cent to Rs 5,844 crore during Q1 versus Rs 5,167 crore in the previous year the same quarter.
Edited by Manoj Sharma