Axis Bank is all set to raise around Rs 6,000 crore through private placement of its equity shares to qualified institutional players (QIPs).
While the board of India’s third largest private lender has already approved the proposed issue, a banking source, who is directly involved in the process, said that the entire process of private placement will be completed.
Along with the investment bankers, which include JP Morgan, Morgan Stanley and Citi Bank, top management of Axis Bank has already gone for the road shows recently.
According to the documents available, all the existing promoters except the Specified Undertaking of unit Trust of India (SUUTI) have given their consent to subscribe to the proposed issue in the proportion of their holdings in the bank. The bank will offer 4.58 crore equity shares of Rs 10 each to QIPs. This constitutes 10.72% of the existing paid up capital of Rs 427 crore.
Among the promoters, SUUTI, which owns 22.8% of the pre-issue paid up capital, will not participate in the issue. As a result, its holding will come down to 20.55% of the enlarged post-issue paid up capital.
Besides SUUTI, all the other promoters like LIC, GIC, New India Assurance, National Insurance Company, Oriental Insurance Company and United India Insurance Company will participate in the offering and will subscribe in proportion of their existing holdings. Among them, LIC owns the maximum 9.26% of the paid up capital.
http://timesofindia.indiatimes.com/business/india-business/Axis-Bank-to-raise-Rs-6000-crore-from-qualified-institutional-players-this-week/articleshow/18213689.cms
