Share price of this large-cap bank stock moved up by 1.74 percent on BSE to Rs. 1,094 in the morning session of Tuesday, compared to its previous closing price of Rs. 1,075.2, following a block deal involving offloading worth about Rs. 3,586 crore.
With a market cap of Rs. 3.35 lakh crore, at 11:50 a.m. the shares of Axis Bank Limited were trading in the green at Rs. 1,087.3 on NSE, up by 1.05 percent.
In the last six months, it has given positive returns of about 9.1 percent, and in the last one year, nearly 28.3 percent. However, so far in 2024, it has given negative returns of around 0.9 percent.
According to the reports, a private equity firm namely Bain Capital was looking to exit by selling about 3.34 crore shares of Axis Bank worth roughly Rs. 3,586.97 crore (or US$431 million) via a block deal.
The private equity firm was eyeing US$431 million from offloading the remaining stake of about 3.34 crore shares in the bank.
As per Moneycontrol, a few entities associated with Bain Capital including South Asia IV, BC Asia Investments VII and BC Asia Investments III, have initiated the block deal with the intention to clean up trade and mark Bain Capital’s complete exit.
The US private equity firm Bain Capital was reported to offer Axis Bank shares at a price range of Rs. 1,071 to Rs. 1,076.05 apiece in the block deal and is poised to completely exit the private sector lender, marking the end of its more than six years of investment in the private sector lender.
As part of a capital raise of Rs. 11,626 crore through equity issuance and warrants, Bain Capital made around Rs 6,854 crore investment in the Axis Bank in November 2017.
In December 2023, the US private equity firm sold a 1.1 percent share for around Rs 3,700 crore, while in June 2023, it sold a 0.7 percent stake. In October 2022, the firm sold a 1.2 percent stake.
In terms of financials, the bank’s revenue from operations increased by 26.3 percent YoY from Rs. 22,843 crore in Q3 FY22-23 to Rs. 28,865 crore in Q3 FY23-24.
The net profit of the bank increased by 4.9 percent to Rs. 6,520 crore in Q3 FY23-24 from Rs. 6,215 crore in Q3 FY22-23.
As of December 2023, FIIs hold 54.68 percent of the shares, whereas DIIs hold 28.83 percent of the shares in the bank, aggregating to 83.51 percent of the institutional holdings.
Axis Bank is the third largest private sector bank in India and offers a wide range of financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses.
Written by Shivani Singh
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