Axis Bank raises Rs 10,000 crore via QIP; price set at Rs 420.10

Private lender Axis Bank raised Rs 10,000 crore via Qualified Institutions Placement (QIP) issue on August 10.

A committee of Whole-Time Directors decided to close the issue on August 10, 2020 and accorded its consent for the issue of 238,038,560 equity shares of Rs 2 each of the bank at a price of Rs 420.10 per equity share.

The issue price is at a discount of 5% (i.e. Rs. 22.09 per equity share) to the floor price of Rs 442.19 per equity share for an aggregate value of Rs 100,000 million.

The bank had announced the opening of its QIP last week to raise funds to enhance its capital adequacy in accordance with regulatory requirements, its growth strategy, addressing risks emanating from the COVID-19 pandemic and for general corporate purposes.

The fund raising was approved by the shareholders of the bank at the 26th Annual General Meeting held on July 31, 2020.

“We have successfully closed our QIP of Rs 10,000 crore. We have received great response from global and local investors alike, and I am grateful to them for their continued faith in the Axis Bank franchise. We believe that the Bank is well placed to leverage all the possible growth opportunities that will come in as the economy opens up and is in a strong position to combat the challenges that emanate from the Covid-19 pandemic crisis," said Amitabh Chaudhry, MD & CEO, Axis Bank.

"We believe in the strong fundamentals of the Indian economy and based on our vision for growth, profitability and sustainability, will keep delivering the best value to our customers, shareholders and investors,” he added.

In the previous trading session, the share closed down 0.52 percent or Rs 2.25 at Rs 430.95.