| Log in

Axis Bank raises over $1B through a mix of QIP and preferential allotment

31 January, 2013

Axis Bank has closed one of the largest equity issues of the current financial year by raising over Rs 4,726 crore through a qualified institutional placement (QIP). This is part of the total fundraising of Rs 5,537 crore, which includes a preferential allotment to certain promoters of the bank.

State-controlled insurers LIC, GIC, National Insurance, United India Insurance and New India Insurance subscribed to the preferential allotment. The country’s third largest private lender also counts administrator of the specified undertaking of the Unit Trust of India, UTI 1 SUUTI, and Oriental Insurance among its promoters.

The QIP received interest from institutional investors from across the globe including large long-only funds, pension funds, insurance companies and domestic mutual funds, according to the bank.

This offering has led to a redistribution of the bank’s shares with the weight of long-only institutions rising significantly. Subsequent to this offering, the shareholding of the promoters will stand at 33.5 per cent, other resident shareholders’ at 19.3 per cent and global institutions’ (including GDRs) at 47.2 per cent. Promoters held around 39 per cent stake in Axis Bank as of Dec 31, 2012.

“We believe that the success of our fundraise signals the belief in the India promise and the renewed interest global investors have in high quality companies and issuers from India,” said Shikha Sharma, MD & CEO of Axis Bank.

The QIP programme was managed by Axis Capital, Citi and JPMorgan.

(Edited by Sanghamitra Mandal)


Leave Your Comment
Govt sells around 9% of Axis Bank for $912M; LIC, Goldman Sachs among buyers

Govt sells around 9% of Axis Bank for $912M; LIC, Goldman Sachs among buyers

TEAM VCC 4 years ago
The government-controlled Specified Undertaking of Unit Trust of India (SUUTI)...
ING Vysya Bank to raise $365M through QIP, preferential allotment

ING Vysya Bank to raise $365M through QIP, preferential allotment

Bruhadeeswaran R 4 years ago
Private sector lender ING Vysya Bank Ltd is planning to raise up to Rs 2,000...
ING Vysya Bank Raises Rs 970Cr Through QIP, Preferential Allotment

ING Vysya Bank Raises Rs 970Cr Through QIP, Preferential Allotment

TEAM VCC 6 years ago
Private sector lender ING Vysya Bank, in which the Dutch financial major ING...
No Comments

Axis Bank raises over $1B through a mix of QIP and preferential allotment

Powered by WordPress.com VIP