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Axis Bank plans to raise Rs 11,626 crore

IANS  |  Mumbai 

Private sector lender on Friday said it plans to raise Rs 11,626 crore to bolster its capital adequacy and for future growth needs.

The country's third-largest private sector would require shareholders' approval to go ahead with its plans to raise the equity and equity-linked capital from a set of marquee investors including entities affiliated with Bain Capital Private Equity and its promoter Life Insurance Corporation of India (LIC).

will seek shareholders' approval at its EGM (extraordinary general meeting) slated to be held on December 8, 2017.

According to the lending major, entities affiliated with Bain Capital have proposed to invest Rs 6,854 crore, while LIC will invest Rs 1,583 crore.

Further, the proposal envisages the to raise Rs 9,063 crore through issuance of equity and the remaining Rs 2,563 crore through issue of warrants.

The announcement comes after the received approval for the plan from its Board of Directors earlier on Friday.

"The proposes to issue 172,630,639 equity shares on preferential basis at a price of Rs 525 per share, and 45,357,385 warrants convertible into equity shares at a price of Rs 565 per share, adding Rs 43.6 crore in the paid up capital of the bank," the company said in a statement.

"This would entail a dilution of 8.23 per cent for existing shareholders."

The lending major said that funds raised will bolster the capital adequacy of the bank, "thereby providing growth capital for the core business of the and its subsidiaries".

"Once approved, this would be one of the largest private equity investments in the Indian banking sector," the statement said.

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, November 10 2017. 19:18 IST
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