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| Axis Bank to raise Rs 940 cr from promoters |
| Press Trust of India / Mumbai Aug 12, 2009, 20:27 IST |
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The country's third-largest private sector lender, Axis Bank, today said it expects to raise about Rs 940 crore through preferential allotment of 1.08 crore shares to its promoters, including LIC, by September 24.
At the current market price of Rs 870.55 per share, the bank is expected to mobilise about Rs 940 crore from its promoters.
In the backdrop of the current economic environment, there is need to maintain a higher level of Tier I equity or core capital which is seen to reflect capital strength, Axis Bank said in a filing on the Bombay Stock Exchange.
Upon assessing the bank's need for core Tier I capital, it is proposed that a maximum of 7.14 crore shares to be issued through preferential allotment or QIP or GDR, it said.
Post preferential allotment, the bank could issue up to 6.06 crore shares through GDR or QIP.
Earlier this month, board of the bank had cleared proposal of share allotment and is seeking shareholders' nod through postal ballot.
The preferential allotment is proposed to be made to promoters LIC, General Insurance Corporation, New India Assurance Company, Oriental Insurance Company, United India Insurance and National Insurance Company, it said.
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