Axis Bank plans to raise Rs 11,626 crore

Mumbai, Nov 10: Private sector lender Axis Bank on Friday said it plans to raise Rs 11,626 crore to bolster its capital adequacy and for future growth needs.

The country’s third-largest private sector bank would require shareholders’ approval to go ahead with its plans to raise the equity and equity-linked capital from a set of marquee investors including entities affiliated with Bain Capital Private Equity and its promoter Life Insurance Corporation of India (LIC).

Axis Bank will seek shareholders’ approval at its EGM (extraordiry general meeting) slated to be held on December 8, 2017.According to the lending major, entities affiliated with Bain Capital have proposed to invest Rs 6,854 crore, while LIC will invest Rs 1,583 crore.

Further, the proposal envisages the bank to raise Rs 9,063 crore through issuance of equity and the remaining Rs 2,563 crore through issue of warrants. The announcement comes after the bank received approval for the plan from its Board of Directors earlier on Friday.”The bank proposes to issue 172,630,639 equity shares on preferential basis at a price of Rs 525 per share, and 45,357,385 warrants convertible into equity shares at a price of Rs 565 per share, adding Rs 43.6 crore in the paid up capital of the bank,” the company said in a statement. “This would entail a dilution of 8.23 per cent for existing shareholders.” (IANS)