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Axis Bank may tap market for ₹10000cr institutional placement

October 04, 2023

Axis Bank may tap market for ₹10000cr institutional placement
Axis Bank, one of the largest private sector lenders, may tap the market to raise funds through a qualified institutional placement (QIP) in the coming weeks, said two people familiar with the matter.

The bank may look to raise ₹10,000 crore or more via this mode, and a decision to this effect may be taken in the board meeting ahead of the second quarter results. The investment bankers will be appointed after the board resolution is passed.
 
“The approval will be for a larger amount. The final amount to be raised will be decided based on the feedback received during roadshows,” said a banker.
 
An e-mail sent to Axis Bank did not get a response. Earlier this year, the bank completed the acquisition of Citibank India’s consumer business, including its credit cards, deposits, wealth management, loans, and other retail banking operations. It also acquired the NBFC business of Citicorp Finance (India), paying a total of ₹11,603 crore for the deals.
 
In an interaction with businessline in September last year, the bank’s MD and CEO, Amitabh Chaudhry, had said that the acquisition would impact the capital ratios of the bank, and may prompt a capital raise large enough to neutralise the impact of the acquisition on the bank’s core capital and take care of growth requirements.
 
The last time the bank tapped the market for a QIP was in August 2020 when it raised ₹10,000 crore. The QIP issuance was done at a price of ₹420.1 per equity share and was oversubscribed. The aim was to raise funds to enhance its capital adequacy, address risks emanating from the Covid-19 pandemic and for general corporate purposes.
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