Bain Capital is reportedly poised to divest a minority stake valued at $444 million in Axis Bank through a block deal scheduled for Wednesday, according to a report by Moneycontrol.
Companies under the ownership of the private equity firm are poised to divest 3.34 crore shares, reflecting a 1.1% ownership stake in the financial institution.
“Entities associated with Bain Capital are looking to sell a 1.1 per cent stake via a block deal in Axis Bank,” sources were quoted as saying.
Potential sellers include BC Asia Investments VII, BC Asia Investments III, and Integral Investments South Asia IV, as mentioned in the report. After the block deal, there would be an ensuing lock-in period of 90 days, sources indicated.
The minimum price for the sale has reportedly been set at ₹1,109 per share, a discount of approximately 2% from the prevailing market price. On Tuesday, Axis Bank’s shares concluded 1.3% higher on the National Stock Exchange, reaching ₹1,131.
If the deal comes through, it would mark the second instance in 2023 of the private equity firm divesting a stake in the private sector lender. In June, Bain Capital successfully offloaded a 0.7% stake in Axis Bank at an average price of ₹968 per share, totaling ₹2,178 crore. Before this, the firm had divested a 1.2% stake in October 2022.
The June sale witnessed significant participation from various foreign portfolio investors, with notable names including Goldman Sachs, Morgan Stanley, Societe Generale, Kuwait Investment Authority, and Ghisallo Fund, among others.
Back in November 2017, a consortium led by Boston-headquartered Bain Capital infused $1.8 billion into Axis Bank to bolster the lender’s capital base. The investment was made at ₹525 per share, and Bain Capital contributed approximately ₹6,854 crore.
Despite the overall underperformance of the banking sector in 2023, Axis Bank’s stock has outperformed the benchmark, delivering impressive returns of over 21% year-to-date.
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Published: 12 Dec 2023, 08:54 PM IST