BackAxis Bank ends 13% higher on reports of $1 bln capital raising plan
The ET on Wednesday reported that private equity major Carlyle is in talks with Axis Bank to pump in around a billion dollars in the lender
PremiumMUMBAI: Shares of private sector lender Axis Bank Ltd on Wednesday closed higher after a report said private equity firm Carlyle Group may invest $1 billion in the bank.
Having risen as much as 15% during the day, Axis Bank Ltd closed 13.5% higher at ₹387.35 per share, while the benchmark Sensex rose 3.2% to close at 31605.22 points.
The Economic Times today reported that private equity major Carlyle has started talks with Axis Bank to pump in around a billion dollars as growing systemic level stress and the economic slump push banks and shadow lenders to create provision cushions to deal with future asset slippages.
The report added that the deal is likely to be in the form of primary issuance of shares via a preferential allotment route that may result in Carlyle owning up to 8% stake in Axis Bank.
Axis Bank, however, clarified to the stock exchanges that the news item is speculative and it has not taken any decision in this regard.
"As such no disclosure is required to be made under the listing regulations and the Bank shall keep the exchange duly informed as and when any decision is taken by it in this matter," it said in a BSE filing.
The private lender reported a net loss of ₹1,387.78 crore in Q4 2020 compared with net profit of ₹1,505.06 crore in the year-ago quarter. Total income rose 10% to ₹20,219 crore during the period.
Axis Bank is the third largest private sector bank in India. It had 4,800 branches, 17,801 ATMs and 4,917 cash recyclers spread across the country as of 31 March and nine overseas offices.
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