Moneycontrol
Jan 28, 2013 04:07 PM IST | Source: Reuters

Axis Bank gains ahead of expected share sale

Reuters Market Eye - Shares in Axis Bank gain 3 percent on expectations that its up to USD 1 billion share sale will attract solid demand.

Axis Bank gains ahead of expected share sale

Shares in Axis Bank gain 3 percent on expectations that its up to USD 1 billion share sale will attract solid demand.


Axis is expected to launch its share sale via a qualified institutional placement (QIP) as early as on Monday, according to multiple dealers.


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"Axis Bank's QIP would easily get oversubscribed as its fundamentals are good. Money raised via QIP would translate into 10 times of credit growth for the bank," said G Chokkalingam, CIO, Centrum Wealth Management.

Axis Bank trades at 1.8 times 12 month forward price-to-book, compared to ICICI Bank that trades at 1.9 times and HDFC Bank at 3.9 times, according to Thomson Reuters StarMine data.

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