More than six years after making a big-bang entry into Axis Bank, Bain Capital is all set to make a complete exit from the private sector lender, as the US private equity major looks to dilute its balance stake and launch a fresh block deal of around $430 million, three people in the know told Moneycontrol.
"The block deal has been launched by a few entities associated with Bain Capital and this is intended to be a clean up trade, marking a full exit of Bain Capital," one of the persons above said.
A second person told Moneycontrol that the offer price range is Rs 1,071 - Rs 1,076.05 per share, a discount of 0 percent to 0.47 percent. Shares of Axis Bank closed at Rs 1,076.05 apiece on April 8.
A third person also confirmed the plans for the fresh block deal by Bain Capital entities and added that investment bank BofA Securities was advising on the proposed transaction.
"Integral Investments South Asia IV, BC Asia Investments VII and BC Asia Investments III are the selling entities," this person elaborated.
All the three persons above spoke to Moneycontrol on the condition of anonymity.
Bofa Securities couldn't be reached for an immediate comment while Bain Capital declined to comment on the same. Moneycontrol has reviewed a copy of the deal termsheet. Bain C
On December 13, Moneycontrol had reported that Bain Capital was looking to sell 1.1 per cent stake in Axis Bank as part of a $444 million block deal.
The lender's stock price has risen by 27.10 per cent in the last year.
In November 2017, in one of the largest private equity investments in the Indian banking sector as part of a Rs 11,626-crore capital raise via issuance of equity and warrants, Bain Capital invested Rs 6,854 crore in Axis Bank. The private equity fund has been gradually diluting its stake in tranches via the block deal route.
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