Axis Bank raises ₹10,000 crore through QIP

Amitabh Chaudhry. File

Amitabh Chaudhry. File   | Photo Credit: Kamal Narang

Private sector lender Axis Bank Ltd, has raised ₹10,000 crore through its Qualified Institutions Placement (QIP) issue, the bank said in a statement.

“Despite a challenging macro-economic environment, the placement has witnessed strong reception from global and domestic investor community, including several large foreign portfolio investors, domestic mutual funds and insurance companies,” it said.

The deal was oversubscribed with the aggregate final transaction size being ₹10,000 crore.

The QIP issuance was done at a price of ₹420.10 per Equity Share.

The QIP issuance price of ₹420.10 per equity share of ₹2/- each of the bank is at a discount of 5% to the floor price of ₹442.19 per equity share of ₹ 2/- each of the bank, determined based on the pricing formula, as prescribed under SEBI regulations.

Amitabh Chaudhry, MD & CEO, Axis Bank said, “We have successfully closed our QIP of ₹10,000 crore. We have received great response from global and local investors alike, and I am grateful to them for their continued faith in the Axis Bank franchise.”

“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,” he said.

“We believe in the strong fundamentals of the Indian economy and based on our vision for growth, profitability and sustainability, we will keep delivering the best value to our customers, shareholders and investors,” he added.

The bank had announced the opening of its QIP last week to raise funds to enhance its capital adequacy in accordance with regulatory requirements, its growth strategy, addressing risks emanating from the Covid-19 pandemic and for general corporate purposes.

The fund raising was approved by the shareholders of the Bank at the 26th Annual General Meeting held on July 31, 2020.

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Printable version | Sep 21, 2020 7:28:52 PM |

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