US private equity firm Carlyle has almost finalised a deal to invest around Rs 5,000 crore in Axis Bank through a preferential allotment.
The due diligence for the deal has begun and a formal announcement might be made in three to four weeks, according to a report by The Economic Times.
This will be Axis Bank's second major capital raising in 2020, after it raised Rs 10,000 crore earlier in August through a qualified institutional placement (QIP).
Moneycontrol could not independently verify the report.
Carlyle declined to comment when contacted by The Economic Times, while Axis Bank had not yet responded.
Also read: Big lenders HDFC, Axis Bank and ICICI Bank go the QIP way to raise Rs 35,000 crore; what does the trend indicate?
Carlyle will be issued new Axis Bank shares and allotted warrants that will be converted over 18-24 months, and is asking for at least one board seat, the report said.
Bank of America and PwC have been hired as advisers for the transaction, the report added.
The report said the private lender raised Rs 22,500 crore of equity over the past 12 months, and used Rs 6,898 crore to make excess provisions during the COVID-19 pandemic.