Axis Bank top Nifty50 loser after Bain Capital sells 1.24% stake in private lender

Axis Bank Share Price: Axis Bank stocks on Tuesday cracked nearly 4 per cent after Bain Capital offloaded 1.24 per cent stake via a block deal in the private lender at a floor price of Rs 888 per share, a 2 per cent discount from the previous closing of 906. Shares of Axis Bank opened at Rs 904 and continued its downtrend to make intraday low of Rs 869. At 2 PM, the private Mumbai based bank's stocks quoted Rs 877 on NSE, slipping over 3 per cent.

In 2017, Axis Bank had proposed to raise equity and equity-linked capital of Rs 11,626 crores 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). Entities affiliated with Bain Capital propose to invest Rs 6,854 crores and LIC proposes to invest Rs 1,583 crores.

The bank had proposed to raise Rs 9,063 crores through the issuance of equity and the remaining Rs 2,563 crores through the issue of warrants. The bank received approval for the capital raise from its Board of Directors on November 10, 2017.

The Bank had proposed to issue 172,630,639 equity shares on a preferential basis at a price of Rs 525 per share (at a premium of 2.4 per cent to the SEBI Floor Price as of the relevant date), and 45,357,385 warrants convertible into equity shares at a price of Rs 565 per share (at a premium of 10.2 per cent to the SEBI Floor Price as of the relevant date), adding Rs 43.6 crores in the paid-up capital of the bank.

Axis Bank Q2 Results
Earlier on October 20, Axis Bank announced its Q2FY23 results. The bank had reported a net profit of Rs 5,330 crores. Their retail loans grew 3 per cent QoQ and rural loans grew 46 per cent YoY. The bank’s Net Interest Income (NII) grew 10 per cent QoQ to Rs 10,360 crores. Net interest margin (NIM) for Q2FY23 stood at 3.96 per cent. The bank holds cumulative provisions (standard + additional other than NPA) of Rs 11,625 crores. The bank’s balance sheet grew 13 per cent YoY and stood at Rs 11,85,272 crores.

The bank’s net advances grew 4 per cent QoQ to Rs 7,30,875 crores as of September 30, 2022. Domestic net loans also grew 4 per cent QoQ. Retail loans grew 3 per cent QoQ to Rs 4,23,235 crores and accounted for 58 per cent of the net advances of the bank.

As of September 30, 2022, the bank’s reported Gross Non-Performing Asset (NPA) and Net NPA levels were 2.50 per cent and 0.51 per cent respectively.
 
Axis Bank stock has delivered a positive return of over 15 per cent to its investors while 26 per cent year-to-date. The stock's 52-week range is Rs 919.95 - Rs 618.25.