Indian private-sector lender Axis Bank has reportedly selected Citigroup and JPMorgan Chase to arrange a share sale to raise at least $1.3bn in capital.
Besides the two banks, the Indian lender also picked Axis Capital, Credit Suisse Group, BNP Paribas, HSBC Holdings and UBS Group to support the step, Bloomberg reported citing sources familiar with the development.
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However, the move was not confirmed by the representatives or spokespersons of the banks.
The development follows last month reports that Axis Bank is consulting with potential advisers on the share sale.
The deal may take place later this year. Meanwhile, the bank may on-board additional arrangers, the unnamed sources added.
The share sale is part of Axis Bank’s strategy to strengthen capital buffers against risks and improve lending capabilities.
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By GlobalDataOne of the sources told the publication that the deal may raise up to $2bn.
Concurrently, the lender in an exchange filing said that its board will meet on 20 July to explore fund raising.
The statement added that the board will explore ‘the option of raising funds by issue of equity shares/ depository receipts and/or any other instruments or securities’.
In 2017, Axis Bank raised around $1.78bn through a private placement of shares.
Axis Bank is the third largest private sector bank in India. It operates 4,050 domestic branches including extension counters, and 11,801 ATMs and 4,917 cash recyclers across the country.
