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Last Updated : Aug 05, 2020 06:21 PM IST | Source: Moneycontrol.com

Axis Bank shares end higher as bank's QIP opens for bidding

The board of the bank had last month approved the Rs 15,000 crore fundraise plan. The QIP was okayed by shareholders at the annual general meeting held on July 31, 2020, the bank said.

 
 
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Shares of Axis Bank closed 1.39 percent higher at Rs 434.85 on BSE on August 5, a day after the company launched Rs 10,000 crore qualified institutional placement (QIP).

Axis Bank on August 4 said it has set a floor price of Rs 442.19 per equity share for its proposed QIP.

The board of the bank had last month approved the Rs 15,000 crore fundraise plan. The QIP was okayed by shareholders at the annual general meeting held on July 31, 2020, the bank said.

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Further, it said the committee may, at its absolute discretion, offer a discount of not more than 5 percent of the said floor price.

Axis Bank said a meeting of the committee is scheduled to be held on August 10, 2020, to consider and approve, among other things, the issue price for the equity shares proposed to be issued.

“We believe this fundraising in this environment would be positive for Axis bank. At base price Tier I to increase approximately 150bps, net worth to gain 11.6 percent, and Book value to increase by 2.9 percent. In uncertain times adequate capital adequacy (CAR) will provide comfort to investors," said Jaikishan Parmar, Senior Equity Research Analyst, Angel Broking.

"Currently, Axis bank trades lower valuation compared to the historical average. Lower valuation and increase in CAR would be positive for Axis Bank. Key to be monitorable here on will be the moratorium percentage of the loan book at the end of moratorium-2 in August,” Parmar added.

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First Published on Aug 5, 2020 11:55 am
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