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Axis Bank shares gain ahead of QIP issue

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Axis Bank shares jumped over 3 per cent on Monday ahead of its Qualified Institutional Placement (QIP) issue due later this week. QIP enables listed companies to raise capital from domestic markets without submitting any pre-issue filings to market regulator Sebi.

The QIP will lead to nearly 11 per cent dilution in Axis Bank's equity, sources said.

Axis Bank will reportedly sell 4.52 crore shares to raise Rs 6,000 crore from institutional investors. The issue is likely to be priced around Rs 1,340-1,350 per share.

Proceeds from the offering will be used to boost the bank's balance sheet, sources said, adding Axis Bank's investment banking unit, Axis Capital, is also one of the advisors on the deal.

Axis Bank is likely to allot proportionate shares on preferential basis to LIC, which already holds 9 per cent stake in the private lender.

Citigroup, JP Morgan, and Enam are bankers to the issue, sources told NDTV Profit.
 

Story first published on: January 28, 2013 14:19 (IST)

Tags: Axis Bank, Citigroup, JP Morgan, Axis Capital

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