Axis Bank, the third largest private sector lender in the country, today said it has raised Rs 5,537 crore by selling shares to institutional investors and certain promoters.
"We are delighted that large global houses and long-term institutions like pension funds, insurance companies and mutual funds have reposed their faith in the bank. We believe that the success of our fund-raise signals the belief in the India promise and the renewed interest global investors have in high quality companies and issuers from India," Shikha Sharma, managing director and chief executive of Axis Bank, said in a statement.
Out of the total funds, the bank raised Rs 4,726 crore through qualified institutional placement (QIP). It claimed that this was the 'largest ever' equity QIP programme by an Indian company. The remaining funds were raised through preferential offer to certain promoters of the bank.
The QIP offer was placed with investors that included large long only funds, pension funds, insurance companies and domestic mutual funds. "This offering has led to a redistribution of the bank's shares with the weight of long only institutions rising significantly," the bank said.
Following the QIP, the shareholding of the promoters stands at 33.5%. Other resident shareholders hold 19.3% stake, while global institutions have the remaining 47.2%.
The QIP programme was managed by Citi, JP Morgan and Axis Bank.
