Axis Bank, the third-largest private sector lender in the country, plans to raise Rs 5,546 crore or over $1 billion by selling 39.9 million shares to institutional investors and promoters, sources familiar with the development said.
The issue, which is priced at Rs 1,390 per share, is expected to open later this evening and will close before market hours tomorrow.
"There are two parts to this issue. The bank will raise Rs 5,546 crore by selling 39.9 million shares," a banker told Business Standard requesting anonymity as the issue was not open yet.
Axis Bank will sell 34 million shares through a qualified institutional placement (QIP). The bank will allot the remaining 5.9 million shares to promoters on a preferential basis.
Citibank, JP Morgan and Axis Securities and Sales were advisor to this transaction.
The bank's board had approved this fund raising programme at a board meeting on December 17, 2012. Axis Bank's senior management team had travelled overseas last week to conduct road shows for this transaction.
The private lender had closed October-December quarter with a capital adequacy ratio of 13.73%.
Axis Bank shares today gained 2.2% and closed at 1,416.50 on the National Stock Exchange (NSE).
