Axis Bank nudges higher after fund raising plans

Axis Bank rose 0.71% to Rs 447.78 at 9:50 IST on BSE after the bank proposes to raise funds by issuing unsecured subordinated, perpetual, additional tier I, Basel III compliant non-convertible debentures.

The announcement was made after market hours yesterday, 12 December 2016.

Meanwhile, the BSE Sensex was up 59.87 points, or 0.23%, to 26,575.11.

On the BSE, 96,339 shares were traded in the counter so far, compared with average daily volume of 7.1 lakh shares in the past one quarter. The stock had hit a high of Rs 448.25 and a low of Rs 442.25 so far during the day. The stock had hit a 52-week high of Rs 638 on 7 September 2016. The stock had hit a 52-week low of Rs 366.65 on 18 January 2016.

The stock had underperformed the market over the past one month till 12 December 2016, falling 10.79% compared with the 1.13% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 24.92% as against Sensex's 6.48% decline.

The large-cap private sector bank has equity capital of Rs 478.24 crore. Face value per share is Rs 2.

Axis Bank announced that the bank proposes to raise funds by issuing unsecured subordinated, perpetual, additional tier I, Basel III compliant non-convertible debentures of the face value of Rs 10 lakh each for cash at par aggregating to Rs 3500 crore.

The board of directors of the bank will consider the proposal to issue and allot the securities through circular resolution. On receipt of the approval of the board of directors, the bank will intimate to the stock exchanges the date of passing of the circular resolution and other details of the issue.

Axis Bank's net profit declined 83.3% to Rs 319.08 crore on 14.1% growth in total income to Rs 13698.77 crore in Q2 September 2016 over Q2 September 2015.

Axis Bank is one of the biggest private sector banks in India.

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