Axis Bank raises Rs 10,000 cr via QIP

Axis Bank gained 2.42% to Rs 441.40 after the bank raised Rs 10,000 crore through qualified institutions placement (QIP) issue on 10 August 2020.

The bank said that the committee of whole-time directors of the bank in its meeting held today considered and approved the allotment of 238,038,560 equity shares at a price of Rs 420.10 per equity share, which takes into account a discount of 5% to the floor price of Rs 442.19 per equity share.

Axis Bank announced the opening of its QIP last week to raise funds to enhance its capital adequacy in accordance with regulatory requirements, its growth strategy, addressing risks emanating from the COVID-19 pandemic and for general corporate purposes. The fund raising was approved by the shareholders of the Bank at the 26th annual general meeting held on 31 July 2020.

Commenting on fund raising, Amitabh Chaudhry, MD & CEO Axis Bank said, "We have successfully closed our QIP of Rs.10,000 crores. We have received great response from global and local investors alike, and I am grateful to them for their continued faith in the Axis Bank franchise. We believe that the Bank is well placed to leverage all the possible growth opportunities that will come in as the economy opens up and is in a strong position to combat the challenges that emanate from the Covid-19 pandemic crisis. We believe in the strong fundamentals of the Indian economy and based on our vision for growth, profitability and sustainability, will keep delivering the best value to our customers, shareholders and investors."

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.

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