Bain to sell 1

Bain to sell 1.24% in Axis Bank for around Rs 3,400 cr

Private equity player Bain Capital is looking to sell a 1.24% stake in Axis Bank, according to persons familiar with the development, in a transaction that could fetch it $410 million (approximately Rs 3,400 crore). Currently, three affiliates of Bain Capital together hold a stake of around 4.27% in Axis Bank. These are: BC Asia Investments VII, BC Asia Investments III and Integral Investments South Asia IV. The stake is held under the FDI category.

The floor price for the shares, expected to be sold in block deals, has been pegged at Rs 888 apiece, a small discount to the market price, the persons said. The Axis Bank stock ended Monday’s trading session at Rs 905.85 apiece, up 0.3% over Friday’s close. Bain Capital had picked up the stake in Axis Bank in November 2017, investing Rs 6,854 crore in the bank.

In November 2017, the Axis Bank board had approved a fundraise — equity and equity-linked capital of Rs 11,626 crore —from a set of marquee investors, including entities affiliated with Bain Capital Private Equity and the bank’s promoter, Life Insurance Corporation of India (LIC).

Also read| Axis Bank net profit jumps 70 pc at Rs 5,330 crore in July-Sep quarter

Entities affiliated with Bain Capital proposed to invest Rs 6,854 cr and LIC proposed to invest Rs 1,583 crore. An amount of Rs 9,063 crore was raised through the issuance of equity and the remaining Rs 2,563 crore through the issue of warrants.