Axis Bank to raise up to Rs 6,490 crore

Axis Bank, the country's third-largest private sector lender, today said it would raise up to Rs 6,490 crore through global depository receipts or placement of shares with institutional buyers.

"Axis Bank obtained approval from its shareholders through a postal ballot for issuing not more than 7.14 crore equity shares by way of GDR/QIP/preferential allotment," the bank said in a statement.

This resolution enables the bank to raise equity capital at an appropriate time, it said.

Shares of the bank closed at Rs 909, down by 0.48 per cent on the Bombay Stock Exchange.

The bank had earlier informed it plans to make preferential allotment of 1.08 crore shares out of total proposed offering to its promoters, including LIC, by September 24.

At the current market price of Rs 909 per share, the bank is expected to mobilise about Rs 981 crore from its promoters.

Post preferential allotment, the bank could issue up to 6.06 crore shares through GDR or QIP, it had said.

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 had said.