Axis Bank gains on launching QIP at Rs 442.29 floor price

The private lender on Tuesday launched a qualified institutional placement (QIP) of shares and set the floor price for the offering at Rs 442.29 a share.

The bank is reportedly targeting a base deal size of Rs 8,000 crore, with an option to up size the deal by Rs 2,000 crore.

In July, Axis Bank had taken an enabling resolution to raise up to Rs 15,000 crore via the equity route.

Axis Bank said the committee of whole-time directors of the bank at its meeting held on 4 August 2020, decided to open the issue for receiving bids. The committee may, at its absolute discretion may offer a discount of not more than 5% to the said floor price. The committee will consider the issue price at its meeting on Monday, 10 August 2020.

The private lender's net profit dropped 18.82% to Rs 1,112.17 crore while total income remained almost flat at Rs 19,125.57 crore in Q1 June 2020 over Q1 June 2019.

Axis Bank is the third largest private sector bank in India. As on 30 June 2020, it had a network of 4,528 domestic branches and extension counters situated in 2,559 centres compared to 4,094 domestic branches and extension counters situated in 2,380 centres last year.

Shares of Axis Bank were trading 2.47% higher at Rs 439.50.

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