Mumbai : Leading private sector bank Axis Bank Limited, on Thursday announced the opening of its Qualified Institutions Placement (“QIP”) last week to raise funds to enhance its capital adequacy, in accordance with the regulatory requirements, for its growth strategy and for general corporate purposes. The QIP was approved by the shareholders of the Bank through a postal ballot on August 21, 2019.
“We understand that the transaction is the largest ever QIP by a private sector issuer in India. Despite a challenging macro-economic and market environment, the placement has witnessed strong reception from the global and domestic investor community. The deal was oversubscribed with the aggregate final transaction size being Rs. 12,500 crores” Axis Bank said in a statement.
The QIP issuance was done at a price of Rs. 629 per Equity Share at a tight discount of 1.44% over the closing price of the issue opening date i.e. September 19, 2019. The QIP issuance price of Rs. 629 per Equity Share is at a discount of 4.91 % to the floor price of Rs. 661.50 per Equity Share, determined as per the SEBI formula. The transaction was anchored by several large marquee foreign portfolio investors, domestic mutual funds and insurance companies.
“The reception for the QIP is an endorsement of Axis Bank and its strong fundamentals. We are deeply honored by the faith that all stakeholders from the financial community have placed on the Axis Bank franchise and the continued support from investors. We are excited about the opportunities that would be created through this capital raise. We will strive to ensure that we continue our growth journey and keep delivering the best value to our customers, shareholders and investors consistently and on a sustainable basis” Mr. Amitabh Chaudhry, MD & CEO, Axis Bank said