Mumbai: Private sector lender Axis Bank Ltd has appointed investment banks Citigroup, JPMorgan and its investment banking arm Axis Capital to help it raise up to $1.3 billion through a share sale, said a person aware of the development.
“The bank plans to raise the funds through a qualified institutional placement (QIP) offering by selling shares to institutional investors. It will help the bank shore up its capital adequacy ratio and push for lending growth," said the person cited above, requesting anonymity as he is not authorized to speak with the media.
On Wednesday, the bank informed stock exchanges that its board will meet on 20 July to explore fundraising options.
“Notice is hereby given that a meeting of the Board of Directors of Axis Bank Ltd will be held on Saturday, 20th July 2019 to inter alia, explore the option of raising funds by issue of equity shares/ depository receipts and/or any other instruments or securities representing either equity shares and/or convertible securities linked to equity shares including through Qualified Institutions Placement (QIP}/ American Depository Receipts (ADRs)/Global Depository Receipts (GDRs} program, preferential allotment or such other permissible mode or combinations thereof as may be decided, subject to approval of the Shareholders of the Bank and receipt of other Regulatory/Statutory approvals at an appropriate time," the bank said in a stock exchange filing.
The bank did not specify the quantum of the fundraise that it is planning.
Axis Bank last raised ₹11,625.8 crore ($1.78 billion) through a private placement of shares from a clutch of investors led by private equity fund Bain Capital in November 2017.
Spokespersons for Axis Bank, Citi and Axis Capital could not be immediately reached for a comment. JPMorgan declined to comment.