Largest ever private QIP: Axis Bank surges 4% after mega Rs 12,500 crore share issue

Axis Bank share price jumped more than 3.6% to hit the day’s high at Rs 719.55 on BSE.

Shares of India’s major private sector lender Axis Bank surged on Thursday morning, after the firm completed largest ever QIP by private sector ever for Rs 12,500 crore. Axis Bank share price jumped more than 3.6% to hit the day’s high at Rs 719.55 on BSE. In a statement to the exchanges, Axis Bank said that the QIP issuance was done at a price of Rs 629 per share at a tight discount of 1.44% over the closing price of the issue opening date i.e. September 19, 2019. “The QIP issuance price of Rs 629 per Equity Share is at a discount of 4.91 % to the floor price of Rs. 661.50 per Equity Share, determined as per the SEBI formula. The transaction was anchored by several large marquee foreign portfolio investors, domestic mutual funds and insurance companies,” the firm added.

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Axis Bank said that this was the largest ever QIP by a private sector issuer in India. Despite a challenging macro-economic and market environment, the placement has witnessed strong reception from the global and domestic investor community, said the bank. “The deal was oversubscribed with the aggregate final transaction size being Rs 12,500 crore,” Axis Bank added.

Taking stock of the mega QIP, Amitabh Chaudhry, MD & CEO, Axis Bank said that the robust response is an endorsement of Axis Bank and its strong fundamentals.  “We are excited about the opportunities that would be created through this capital raise. We will strive to ensure that we continue our growth journey and keep delivering the best value to our customers, shareholders and investors consistently and on a sustainable basis,” he said.

In the latest quarter, Axis Bank’s net profit jumped 95% on-year (y-o-y) to Rs 1,370.08 crore for the April-June period against Rs 701.09 crore in the corresponding quarter last year. The firm posted a 13.1% on-year rise in net interest income (NII) to Rs 5,844 crore. NII is the difference between interest earned and interest paid by a bank.