Axis Bank hits fresh 52-week high on board nod for preferential issue plan

Axis Bank hit a fresh 52-week high of Rs 565, up 4% on the BSE in early morning trade, after the private lender's board of directors on Friday agreed raising of Rs 11,625 crore through the issue of preferential equity shares and convertible warrants to Bain Capital, Life Insurance Corporation of India (LIC) and others. The bank made announcement on Friday after market hours.

Axis Bank said it proposes to raise equity and equity-linked capital of Rs 11,626 crore from a set of marquee investors including entities affiliated with Bain Capital Private Equity and the Bank’s promoter Life Insurance Corporation of India. Entities affiliated with Bain Capital proposes to invest Rs 6,854 crore and LIC proposes to invest Rs 1,583 crore.

The bank proposes to raise Rs 9,063 crore through issuance of equity and the remaining Rs 2,563 crore though issue of warrants, it added.

The bank would issue 172.6 million equity shares to investors, including promoters, at Rs 525 per share. Additionally, the lender would issue 45.3 million warrants at Rs 565 per warrant.

The capital raised will bolster the capital adequacy of the Bank, thereby providing growth capital for the core business of the Bank and its subsidiaries, Axis Bank said in press release.

In past three weeks, Axis Bank outperformed the market by gaining 26% against 2.5% rise in the S&P BSE Sensex.

At 9:44 am, the stock was up 1.6% at Rs 553, as compared to 0.05% decline in the benchmark index. A combined 6.65 million shares changed hands on the counter on the NSE and BSE.