Axis Bank Limited, one of India’s largest private sector banks announced the opening of its Qualified Institutions Placement (“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.
Despite a challenging macro-economic environment, the placement has witnessed strong reception from the global and domestic investor community, including several large foreign portfolio investors, domestic mutual funds and insurance companies. The deal was oversubscribed with the aggregate final transaction size being Rs. 10,000 crores. The QIP issuance was done at a price of Rs. 420.10 per Equity Share. The QIP issuance price of Rs. 420.10 per Equity Share of Rs. 2/- each of the Bank is at a discount of 5% to the floor price of Rs. 442.19 per Equity Share of Rs. 2/- each of the Bank, determined based on the pricing formula, as prescribed under Regulation 176(1) of the SEBI ICDR Regulations.
Mr. Amitabh Chaudhry, MD & CEO, Axis Bank said, “We have successfully closed our QIP of Rs.10,000 crores. 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. 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.”
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