Axis Bank's shareholders have approved mobilisation of Rs. 11,626 crore through sale of shares and warrants to a group of investors, including Bain Capital and LIC, the private lender said today.
The shareholders approved the fund-raising during an extraordinary general meeting (EGM) of the bank today. "We are honoured by the faith reposed by investors, including Bain Capital and our promoters LIC of India, in the long-term strategy of the bank," Axis Bank MD and CEO Shikha Sharma said in a statement.
The investment also reaffirms the confidence foreign investors have in the India growth story, she added. The bank's board had earlier approved the proposal to raise the money on November 10. Axis Bank will mop up Rs. 9,063 crore through share sale and Rs. 2,563 crore from sale of warrants.
Entities affiliated to Bain Capital propose to invest Rs. 6,854 crore while the Life Insurance Corporation (LIC) will be issued around 3.02 crore shares on a preferential basis. This will lead to 9 per cent stake dilution for Rs. 11,625 crore.
Bain Capital (with 4.8 per cent stake), Capital group (3 per cent) and LIC (1.2 per cent) are the main investors.