Comprehensive M&A data with integrated detailed company information

Axis Bank selects lenders to arrange a share sale worth around USD 1.3bn: Bloomberg
Posted on Thursday, 11 July 2019 13:47
India-based Axis Bank is planning a share sale worth at least USD 1.30 billion and has already chosen its lenders to help run the process, people familiar with the matter told Bloomberg.

According to the insiders, Citigroup, JPMorgan Chase & Co, Credit Suisse, BNP Paribas, HSBC Holdings, UBS Group and Axis Capital have all been hired to arrange the capital raising.

One of the sources suggested the deal could actually be worth up to USD 2.00 billion.

In an exchange filing yesterday, Axis Bank said its board will meet on 20th July 2019 to consider a proposal to raise funds by the sale of shares, depository receipts or other instruments representing stock or convertible securities linked to equity.

The process, whichever process is chosen, would be subject to approval from investors and regulators at a later time.

People close to the situation told Bloomberg that a deal could help Axis Bank boost loans and overall capital buffer and a cash call is likely to happen before the end of this year.

Shares in the company are currently trading down slightly at INR 765.45 (USD 11.18), giving India’s third-largest lender a market capitalisation of INR 2,010 billion.

The bank has a footprint of 4,050 domestic branches, with 11,801 automated machine tellers (ATMs) and 4,917 cash recyclers across the country as of 31st March 2019.

Axis Bank posted net interest income of INR 160.03 billion in the nine months to 31st March 2019, while total deposits stood at INR 5,141 billion, its balance sheet size was INR 7,562 billion, and its Tier 1 capital adequacy ratio was 12.5 per cent at 31st December 2018.

Indian commercial lenders have been targeted in 48 announced deals in 2019 to date, according to Zephyr, the M&A database published by Bureau van Dijk.

The largest of these involves the Government of India injecting INR 90.86 billion in Corporation Bank, taking its holding from 56.8 per cent to 93.5 per cent.

© Zephus Ltd