Private equity firm Bain Capital is looking to mark its exit from private lender Axis Bank by selling 33.4 million shares worth $431 million via block deal, according to a report by Moneycontrol.
Bain Capital is offering Axis Bank shares at a price range of ₹1,071 to ₹1,076.05 per share. After over six years of a significant entrance into Axis Bank, Bain Capital is poised to fully divest from the private sector lender.
Last December, the US private equity firm divested a 1.1 per cent stake in Axis Bank for more than ₹3,700 crore.
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In June of the same year, it had previously sold a 0.7 per cent stake in Axis Bank at an average price of ₹968 each, totaling ₹2,178 crore. Before that, the private equity entity had disposed of a 1.2 per cent stake in October 2022. Over the past year, Axis Bank shares have yielded investors returns of over 26 per cent.
The report further revealed that investment bank BofA Securities is advising the upcoming block deal. “Integral Investments South Asia IV, BC Asia Investments VII and BC Asia Investments III are the selling entities,” sources were quoted as saying.
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In December last year, media reports revealed that Bain Capital was seeking to divest a 1.1 percent stake in Axis Bank through a $444 million block deal.
In November 2017, Bain Capital made one of the most substantial private equity investments in the Indian banking sector. As part of a ₹11,626-crore capital raise through equity and warrants issuance, the firm injected ₹6,854 crore into Axis Bank. Since then, Bain Capital has been progressively reducing its stake through block deals.
Shares of Axis Bank ended Monday’s trading session with a 1.7 per cent increase, reaching ₹1,077 on the National Stock Exchange.
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Published: 08 Apr 2024, 08:34 PM IST