Axis Bank launches QIP to raise Rs. 14000 crore

India’s third largest private sector bank, Axis Bank Ltd. has opened is Qualified Institutional Placement (QIP) process on Thursday that will help it raise funds worth US$ 1.5 billion to US$ 2 billion (approximately Rs. 14,000 crore), along with an option to raise another US$ 350 million subject to demand.

The bank has set the floor price at Rs. 661.50 per equity share. In the statement, the bank, at its absolute discretion, may offer a discount of not more than 5 percent to the said floor price. Axis Bank will use this fund to strengthen its balance sheet and utilize for expansion purpose.

In the regulatory filing, the bank stated that – “Pursuant to the approval granted by the Board of Directors of AXIS Bank (the Board), at its meeting held on July 20, 2019, the approval granted by the Shareholders of the Bank through postal ballot on August 21, 2019 to the Issue, the Committee of Whole-Time Directors of the Bank (the "Committee"), at its meeting held today 19th September 2019, has decided to open the Issue for receiving bids, in accordance with the provisions of Chapter VI of the SEBI ICDR Regulations. The Committee also approved and adopted the preliminary placement document dated 19th September 2019 in connection with the Issue.”

The bank had also mentioned that the meeting of the Committee of Whole-Time Directors of the Bank will be held on Wednesday, 25th September 2019 to consider and approve, among other things, the issue price for the Equity Shares proposed to be issued pursuant to the issue in accordance with the Chapter VI and other applicable provisions of the SEBI ICDR Regulations.

Shares of Axis Bank had closed lower in BSE at Rs.638.25 on Thursday as compared to the previous close of Rs. 648.20. The stock hit an intraday high of Rs. 649.90 and intraday low of 632.70.