India-based private sector lender Axis Bank has raised INR100bn ($1.34bn) through a Qualified Institutions Placement (QIP) issuance.

The fundraising has been approved by the shareholders of the bank at its Annual General Meeting (AGM) held on 31 July 2020.

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The bank said its whole-time directors committee had closed the issue on 10 August 2020.

The floor price of each Axis Bank equity share is valued at INR442.19.

The committee allotted 238,038,560 equity shares worth INR2 each at an issue price of INR420.10 per share.

This means that the issue price was set at a discount of 5% per equity share aggregating to $1.34bn.

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Axis Bank said it will use fresh funds to bolster its capital adequacy ratio according to the regulatory requirements, fund growth strategy, and to cover the risks brought about by the Covid-19 pandemic.

Axis Bank MD & CEO Amitabh Chaudhry said: “We have successfully closed our QIP of INR100bn. We have received great response from global and local investors alike, and I am grateful to them for their continued faith in the Axis Bank franchise.

“We believe that the Bank is well placed to leverage all the possible growth opportunities that will come in as the economy opens up and is in a strong position to combat the challenges that emanate from the Covid-19 pandemic crisis.

“We believe in the strong fundamentals of the Indian economy and based on our vision for growth, profitability and sustainability, will keep delivering the best value to our customers, shareholders and investors.”