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.”