One of India's largest private sector banks, Axis Bank last week announced the opening of its QIP to raise funds to enhance its capital adequacy, in line with regulatory requirements, for its growth strategy and for general corporate purposes.
The QIP was approved by the bank shareholders through a postal ballot on August 21, 2019.
The Axis Bank stock was trading higher on Thursday at Rs 703.90 a share, up Rs 8.95, or by 1.29 per cent, at 1.34 p.m. on the BSE.
"We understand that the transaction is the largest ever QIP by a private sector issuer in India. Despite a challenging macro-economic and market environment, the placement has witnessed strong reception from the global and domestic investor community. The deal was oversubscribed with the aggregate final transaction size being Rs 12,500 crore," the bank said.
The QIP issuance was done at a price of Rs 629 per equity share at a tight discount of 1.44 per cent over the closing price of the issue opening date of September 19, 2019.
The QIP issuance price of Rs 629 per equity share is at a discount of 4.91 per cent to the floor price of Rs 661.50 per Share has been determined as per regulator SEBI's formula.
The transaction was anchored by several marquee foreign portfolio investors, domestic mutual funds and insurance companies.
Commenting on the development, Axis Bank Chief Executive Amitabh Chaudhry said: "The reception for the QIP is an endorsement of Axis Bank and its strong fundamentals. We are deeply honoured by the faith that all stakeholders from the financial community have placed on the Axis Bank franchise and the continued support from investors."
( With inputs from IANS )