Axis Bank Raises Rs 10,000 Crore Via QIP; Shares Up 3%

On Tuesday, shares of Axis Bank gained almost 3 percent to touch an intraday high of Rs 444.55 after the private lender raised Rs 10,000 crore via Qualified Institutions Placement (QIP) issue.

In a stock exchange filing, the bank said that its committee of whole-time directors has considered and approved the allotment of 23.80 crore equity shares at a price of Rs 420.10 per share (including a premium of Rs 418.10 per share), aggregating Rs 10,000 crore, to successful eligible Qualified Institutional Buyers.

"Pursuant to the allotment of Equity Shares in the Issue, the paid-up equity share capital of the Bank stands increased from Rs. 5,64,40,54,948 (2,82,20,27,474 equity shares of Rs. 2/- each) to Rs. 6, 12,01,32,068 (3,06,00,66,034 equity shares of Rs. 2/- each)," it added.

The stock was among the top gainers on the benchmark indices for the day.

Axis Bank had announced the opening of its QIP last week to raise funds to enhance its capital adequacy in accordance with regulatory requirements, its growth strategy, addressing risks emanating from the COVID-19 pandemic and for general corporate purposes.

The lender said that it had received a strong response from the global and domestic investors for the issue.

Lately, the banking sector has been taking fundraising means to prepare for any risks from defaults as businesses are being affected by low economic activity. So far six banks, including ICICI Bank, Yes Bank and Kotak Mahindra Bank have announced or completed their QIP plans.