The Indian QIP party, which kicked off with the real estate sector, has now assumed a diverse flavour. Private sector lender Axis Bank has raised $720 million throught its QIP (qualified institutional placement) and GDR (global depository reciepts) issue. The issue of Axis Bank, India's third largest private bank after ICICI Bank and HDFC Bank, opened the issue yesterday only, which got closed last night, according to reports. The bank planned to issue shares worth $600 million, with a greenshoe option of raising another $120 million.
The shares were placed at Rs 906.70 per share with a total equity dilution of 11%. At 10.45 Am today the shares of Axis were trading at Rs 913, up 0.25%. The shares hit a high of Rs 922 in the morning trade. Deutsche Bank, JPMorgan and Goldman Sachs were the bankers to the issue.
The issue met with a high demand from both US and European investors, according to a report in Reuters. Asian funds also showed an interest in the issue. The funds will be used by the Shikha Sharma-led bank tofuel its growth and expansion in the coming years. They will also be invested in the private equity and asset management business, according to this report.
Other banks which have managed to raise funds through QIP include ING Vysya Bank, which raised Rs 230 crore and IndusInd Bank, Rs 480 crore. India's biggest home finance company, HDFC, also raised Rs 4,000 crore through a QIP of non-convertible debentures.