Bain Capital likely to sell 1.24% stake in Axis Bank for Rs 3,350 crore via block deal today

Axis Bank

US-based private investment firm Bain Capital is likely to sell stake in Axis Bank via block deals on November 1, according to a CNBC Awaaz report on October 31.

The PE firm is looking to sell 1.24 percent stake for shares worth Rs $410 million or Rs 3,350 crore in the private lender.

The deal is likely to be at a floor price of Rs 888 per share, which is 2 percent discount to the closing price, sources told CNBC Awaaz.

The shares of Axis Bank on October 31 closed 0.33 percent higher at Rs 906 apiece on BSE against its previous close.

Bain Capital has invested in Axis Bank in 2017.

In 2017, the lender had approved and conducted a sale of 9 per cent stake to raise Rs 11,626 crore, in a round led by Bain Capital. The PE fund invested Rs 6,854 crore and the deal was concluded at Rs 525 a share, while the issue price of the convertible warrants stood at Rs 565.

Currently, the three Bain Capital affiliates collectively hold 4.24 percent stake in Axis Bank under the foreign direct investment (FDI) category.

Last year, the lender appointed Ashish Kotecha, a nominee of Bain Capital, as an additional non-executive director. "The board of directors of the bank has today approved the appointment of Ashish Kotecha as an additional non-executive (nominee of entities affiliated to Bain Capital) director of the bank with effect from Sunday, December 19, 2021," Axis Bank had said in a regulatory filing.

Meanwhile, Axis Bank on October 20 had posted a 70 percent year-on-year (YoY) rise in its net profit, for the quarter ending September (Q2FY23). Net profit grew 29 percent QoQ.

The YoY increase in net profit beat street estimates as analysts had expected the bank to report a 45 percent YoY surge for the quarter, supported by healthy core income growth and strengthening asset quality.

Its net interest income (NII) went up by 31 percent YoY to Rs 10,360.3 crore, from Rs 7,900 crore in Q2FY22. It was Rs 9,384 crore in Q1FY23. Its net interest margin (NIM) was at 3.96 percent, which is a rise of 57 bps YoY and 36 bps rise QoQ.