Axis Bank gained 1.45% to Rs 520.80 at 14:40 IST on BSE after the bank said that it has allotted senior fixed rate green bonds aggregating to $500 million under the medium term note programme.
The announcement was made after market hours yesterday, 1 June 2016.Meanwhile, the S&P BSE Sensex was up 27.38 points or 0.1% at 26,741.31.
On BSE, so far 2.5 lakh shares were traded in the counter as against average daily volume of 7.72 lakh shares in the past one quarter. The stock hit a high of Rs 521.75 and a low of Rs 506.90 so far during the day. The stock had hit a 52-week high of Rs 613.40 on 16 July 2015. The stock had hit a 52-week low of Rs 366.65 on 18 January 2016. The stock had outperformed the market over the past one month till 1 June 2016, gaining 8.7% compared with 4.32% gains in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 30.99% as against Sensex's 12.34% gains.
The large-cap bank has equity capital of Rs 477.18 crore. Face value per share is Rs 2.
Axis Bank said that it has allotted senior fixed rate green bonds aggregating to $500 million under the medium term note (MTN) programme through its Dubai International Financial Centre (DIFC) branch. The notes will be listed at the Singapore Stock Exchange and London Stock Exchange. The notes have been priced at 160 basis points over the 5-year US Treasury Note, at a price of 99.479% to yield 2.988%. The notes will be denominated in US dollars, and will bear fixed interest of 2.875% per annum, with interest payable semi-annually in arrears.
Separately, Axis Bank said that it has signed tripartite share subscription agreement and shareholders agreement with A.Treds and Mjunction services. A.Treds is a subsidiary company of Axis Bank. Mjunction services is a joint venture between Tata Steel and Steel Authority of India.
As per the agreement, Axis Bank purchased 1.65 crore shares of A.Treds for Rs 16.50 crore and Mjunction purchased 82.50 lakh shares of A.Treds for Rs 8.25 crore. Consequently, Axis Bank holds 67% stake and Mjunction holds 33% stake in A.Treds. Axis Bank will have right to nominate 4 directors and Mjunction will have right to nominate 2 directors on the board of A.Treds. Axis Bank and Mjunction shall have pro-rate first right of subscription in case of any further issuance of shares by A.Treds.
A.Treds is licensed by the Reserve Bank of India to engage in the business of trade receivables discounting systems (TReDS). Mjunction is the largest B2B e-commerce company in India and is the largest e-marketplace for steel in the world. The announcement was made after trading hours yesterday, 1 June 2016.
Axis Bank's net profit fell 1.2% to Rs 2154.28 crore on 9.8% rise in total income to Rs 13592.97 crore in Q4 March 2016 over Q4 March 2015.
Axis Bank is one of the biggest private sector banks in India.
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