Axis Bank slips after block deals

Axis Bank fell 2.15% to Rs 886.40 on high volumes after the counter reported multiple block deals in initial trade today, 1 November 2022.

On the BSE, 4.17 crore shares of the company were traded in the counter so far as against an average trading volume of 7.21 lakh shares in the past three months.

On the NSE, 1.35 crore shares changed hand in the counter so far compared with an average trading volume of 99.53 lakh shares traded in the past three months.

The media reported that American private equity (PE) major Bain Capital is likely to offload 1.24% stake in private sector lender Axis Bank through a block deal on Tuesday (1 November 2022).

Bain Capital bought the stake in November 2017, investing Rs 6,854 crore in the private bank.

The PE firm held 4.24% stake in Axis Bank as of 30 September 2022 through three entities - BC Asia Investments VII, BC Asia Investments III and Integral Investments South Asia IV.

It reportedly aims to raise $410 million through the stake sale. It is likely to sell the stake at Rs 888, a discount of about 2% to Monday's close price of Rs 906.

Axis Bank is the third-largest private sector bank in India. Its net profit soared 70% to Rs 5,329.77 crore on 20% increase in total income to Rs 24,180.08 crore in Q2 FY23 over Q2 FY22. Net interest income (NII) increased by 31% YoY and 10% QoQ to Rs 10,360 crore. Net interest margin (NIM) for Q2 FY23 stood at 3.96%, up 57 basis points YoY and 36 basis points QoQ.

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