Axis closes Rs 11,626-cr fund raising, its largest-ever

Private sector lender Axis Bank today completed largest fund infusion in the domestic banking sector through the private equity route, totalling Rs 11,626 crore, of which private equity major Bain Capital and a clutch of affiliated entities pumped in a whopping Rs 6,854 crore.
The deal also saw Life Insurance Corporation, its principal promoter, pumping in Rs 1,583 crore into the third largest private sector lender.
While the bank raised Rs 9,063 crore through issuance of equity, it mopped up Rs 2,563 crore by issuing warrants to these investors.
With this, total issued and paid-up share capital of the bank has increased to Rs 512 crore, aggregating to 256.38 crore shares, from Rs 479 crore or 239.85 crore shares, the bank said in a regulatory filing late this evening.

The bank has allocated preferential shares and warrants to these investors, entailing a dilution of 8.23 per cent for existing shareholders.
Of the total amount raised, entities affiliated with Bain Capital infused Rs 6,854 crore, while LIC, the principal promoter of the bank, has pumped in Rs 1,583 crore.

A sub-committee of the bank's board which met today approved the issuance and allotment of shares, which were issued at a premium, it said.
On November 10, the board of the bank had approved the single largest private equity investment in the domestic banking space.
As per the pre-decided price, the shares of Rs 2 face value each were issued at Rs 525 each, while the Axis Bank counter closed flat at Rs 548.25 a piece on BSE.

The bank raised Rs 9,063 crore through issuance of equity and the remaining Rs 2,563 crore through issue of warrants. The bank had called an EGM on December 8 to seek shareholders' approval.
The bank issued 3.01 crore equity shares to promoter LIC, 5.56 crore to BC Asia Investments VII, 4.28 crore shares to EuroPacific Growth Fund, 3.19 crore to Integral Investments South Asia IV, 59.98 lakh to New World Fund, 2.26 lakh to Capital Group New World Fund, 53.08 lakh to American Funds Insurance Series - International Fund, and 5.65 lakh shares to American Funds Insurance Series International Growth, it said.

It issued 4 crore warrants carrying an option to subscribe to an equal number of equity shares to BC Asia Investments III, 27.86 lakh warrants to New World Fund, 1.05 lakh warrants to Capital Group New World Fund and 24.66 lakh warrants to American Funds Insurance Series International Fund, it said.
While Axis Bank was advised by its i-banking arm Axis Capital, Bain Capital was advised by JP Morgan on this transaction. Legal advisors to Axis Bank were Shardul Amarchand Mangaldas and Bain Capital was advised by AZB & Partners.