Axis Bank soars 15% on report PE firm Carlyle could pick 8% stake

The private equity firm Carlyle may infuse $1 billion to own up to 8 per cent of Axis Bank, report suggest.

Shares of Axis Bank soared 15 per cent to Rs 392.5 in the intra-day trade today on the BSE on Wednesday on reports that private equity (PE) firm Carlyle was looking to pick around 8 per cent stake in the lender. The stock trades in the future & option (F&O) segment, which has no circuit limits.

At 2:21 pm, the stock was trading 11 per cent higher at Rs 378 per share, as against a 842 points, or 2.75 per cent, rise in the benchmark S&P BSE Sensex at 31,451 level.

"PE firm Carlyle may infuse $1 billion to own up to 8 per cent of Axis Bank. The fund-raising is expected to be via a primary issuance of shares through a preferential allotment route," reported The Economic Times.

The Mumbai-headquartered bank, however, called the report "speculative" in nature, and said that it has not taken any such decision in this regard. READ STATEMENT HERE

The private sector lender further said as such no disclosure is required to be made under Reg. 30 of the listing regulations. The Bank shall keep the Exchange duly informed as and when any decision is taken by it in this matter, it added.

Last month, Fitch Ratings had affirmed Axis Bank's long-term issuer default rating at 'BB+', with a stable outlook. The agency had also downgraded the bank's Viability Rating by one notch to 'bb' from 'bb+'.

The rating actions, the agency said, was driven by rapid deterioration in the operating environment for banks in India following the coronavirus pandemic and measures to contain its spread.