Axis Bank up 5% on talks of Bain Capital eyeing stake
The stock was up 5% to Rs 508 on the BSE on back of heavy volumes.
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Axis Bank branch closed during a raid by Income Tax officials in the Chandni Chowk in New Delhi
Axis Bank was trading 5% higher at Rs 508 on the BSE in an otherwise subdued market as the media report suggested that the private equity (PE) firm Bain Capital is eyeing stake in the private sector lender. The S&P BSE Sensex and Nifty50 index were down 0.25% each at 10:50 AM.
The stock hit an intra-day high of Rs 511 and have seen huge trading volumes. A combined 12.78 million shares already changed hands on the counter so far against an average of 19.5 million shares traded in the past two weeks on the BSE and NSE.
The Boston-headquartered Bain Capital and some of its global sponsors are likely to buy a stake worth up to $1 billion (Rs 6,500 crore) in the bank through a preferential share allotment plan, the Times of India report suggests.
In past 10 trading sessions, the stock had underperformed the market by falling 9% till Monday, as the bank’s September quarter profit missed Street expectations, amid worsening of asset quality. On comparison, the S&P BSE Sensex was up 2.6% during the period.
The stock hit an intra-day high of Rs 511 and have seen huge trading volumes. A combined 12.78 million shares already changed hands on the counter so far against an average of 19.5 million shares traded in the past two weeks on the BSE and NSE.
The Boston-headquartered Bain Capital and some of its global sponsors are likely to buy a stake worth up to $1 billion (Rs 6,500 crore) in the bank through a preferential share allotment plan, the Times of India report suggests.
In past 10 trading sessions, the stock had underperformed the market by falling 9% till Monday, as the bank’s September quarter profit missed Street expectations, amid worsening of asset quality. On comparison, the S&P BSE Sensex was up 2.6% during the period.