Mumbai: Axis Bank has raised $720 million through a sale of shares to institutions and an issue of global depositary receipts on strong demand from European and US investors, two banking sources said on Friday.
“The demand was overwhelming,” said one source, who was directly involved in the deal. “As we speak Asian funds are enquiring but we have to turn them down as the book has closed.”
The $600 million share sale, with a green shoe option of another $120 million, attracted demand for as much as $900 million when the book closed on Thursday night, the sources said.
The shares were placed at Rs906.7 each, the sources told Reuters, a 0.5% discount to the stock’s close on the Mumbai exchange on Thursday.
The sale was helped by a stock market rally, which has seen the benchmark index rise to 16-month high.
The offering follows a $660 million equity sale by energy giant Reliance Industries, $630 million IPO of Adani Power in July, $1.25 billion IPO of NHPC Ltd and a raft of institutional share placements.
Three quarters of the Axis Bank offering would be allocated to qualified institutional investors, with the remainder raised through global depositary receipts, the sources said, adding allocations would be completed in a matter of hours.
“Most investors preferred holding direct equity than GDR’s, which do not have voting rights unless converted,” a source said.
Deutsche Bank, JPMorgan and Goldman Sachs arranged the issue, the sources said.
Officials at Axis Bank could not be immediately reached for comment.