Axis Bank raises $720 mn via GDR, QIP

The country's third largest private sector lender, Axis Bank, today raised $720 million (nearly Rs 3,466 crore) through global depository receipts and private placement of shares with potential buyers.

The lender has exercised the upsize option and has alloted shares worth $720 million (nearly Rs 3,466 crore) at Rs 906.70 a piece, sources close to the deal said.

The transaction was launched last evening with the base size of $600 million (nearly Rs 2,887 crore). The bank had an option to upsize the offer to $720 million, the source added.

There was an overwhelming response to the Axis Bank issue. Strong institutional interest from investors across the globe was witnessed, substantive interest from domestic institutional investors, including mutual funds and insurance companies was seen, the source said.

When contacted, the Axis Bank spokesperson, however, declined to comment citing regulatory reasons.

The bank has obtained an approval from its shareholders through postal ballot for issuing not more than 7.14 crore equity shares by way of GDR/ QIP/ preferential allotment.