Axis Bank goes for largest QIP by private lender

Private sector lender Axis Bank has raised a whopping sum of Rs 12,500 crore through qualified institutional placement (QIP). This happens to be India's largest QIP till date by any private lender till now.

"The bank's committee, at its meeting held on Thursday, decided to close the issue and has accorded its consent for the issue of over 19 crore equity shares of Rs 2 each at a price of Rs 629 per equity share," the bank said in a statement.

It added that despite a challenging macro-economic and market environment, the placement of the Axis Bank QIP had witnessed strong reception.

The transaction was anchored by several large marquee foreign portfolio investors, domestic mutual funds and insurance companies, the bank added.

The bank is expected to use the amount raised to enhance its capital adequacy, thereby enhancing its growth prospects.

"The reception for the QIP is an endorsement of Axis Bank and its strong fundamentals. We are deeply honored by the faith that all stakeholders from the financial community have placed on the Axis Bank franchise and the continued support from investors. We are excited about the opportunities that would be created through this capital raise. We will strive to ensure that we continue our growth journey and keep delivering the best value to our customers, shareholders and investors consistently and on a sustainable basis," Amitabh Chaudhry, MD & CEO, Axis Bank said.

The bank had announced the opening of its QIP last week after it was approved by the lender's shareholders through a postal ballot on August 21.

The bank had clocked 95% year-on-year growth in its net profit at Rs 1,370 crore for the first quarter ended June 30.