Indian private sector lender Axis Bank has secured approval of the board of directors to raise INR116.26bn ($1.78bn) in capital by offloading shares and warrants to investors including Bain Capital Private Equity and Life Insurance Corporation of India (LIC).

The lender intends to secure INR90.63bn through sale of common stock and INR25.63bn via issuance of warrants. Under the arrangement, Bain capital and its affiliate companies will invest INR68.54bn, while LIC will INR15.83bn.

The transaction will involve disposal of 172.6 million shares at INR525 per share and 45.3 million warrants at INR565 per share.

The secured funds will be used to strengthen capital reserves of the bank and bolster core banking operations.

Axis Bank CEO Shikha Sharma said: “We are honoured by the faith reposed by marquee investors including Bain Capital and our promoters LIC in the long-term strategy of the bank.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.