Axis Bank is trading higher by 3% to Rs 1,457, extending its previous day’s 2.2% gain after the bank said it has launched its Rs 5,550 crore ($1 billion) share issue last evening.
The issue was oversubscribed over three times, reports claimed.
"It has been a dream transaction," Manish Chokhani, managing director and chief executive officer of Axis Capital, said.
India’s third largest private sector lender is offering 39.9 million shares at Rs 1,390 per share to institutional investors and promoters.
“Axis Bank was planning to sell 34 million shares through a qualified institutional placement (QIP). The bank had decided to allot the remaining 5.9 million shares to promoters on a preferential basis,” the Business Standard report suggests.
Citibank, JP Morgan and Axis Capital were advisor to this transaction, added report.
The stock opened at Rs 1,416 and hit a 52-week high of Rs 1,465 on NSE. A combined 1.59 million shares have already changed hands on the counter in morning deals against an average around two million shares that were traded daily in past two weeks.