Axis Bank share price gains 3% after lender raises Rs 10,000 crore via QIP

Axis Bank share price rose 3 percent intraday after the private sector lender raised Rs 10,000 crore via Qualified Institutional  Placement (QIP) issue. Share price of Axis Bank gained 2.99% to Rs 443.85 against previous close of Rs 430.95 on BSE. Axis Bank share price trades higher than 5, 20, 50 and 100-day but lower than 200 day moving averages.

Axis Bank share has lost 33% in one year and lost 41.23% since the beginning of this year. Market cap of Axis Bank rose to Rs 1.25 lakh crore as of today's session. Stock price of Axis Bank has gained 0.73% in one month. 

Total 5.01 lakh shares changed hands amounting to turnover of Rs 22.08 crore on BSE. Board of the lender in July cleared the Rs 15,000-crore fund raise plan.

The QIP was approved by shareholders at the annual general meeting held on July 31, 2020. A committee of Whole-Time Directors closed the QIP on August 10, 2020 and accorded its consent for the issue of 238,038,560 equity shares of Rs 2 each of the bank at a price of Rs 420.10 per equity share, the lender said.

Axis Bank raises Rs 10,000 crore through QIP

The issue price is at a discount of 5% (i.e. Rs 22.09 per equity share) to the floor price of Rs 442.19 per equity share for an aggregate value of Rs 10,000 crore. In September 2019, the private lender raised Rs 12,500 crore through a QIP to fund business growth.

In Q1 of previous fiscal,  Axis Bank reported 19 per cent decline in standalone net profit at Rs 1,112 crore for June quarter of the current financial year. The third-largest private sector bank posted a net profit of Rs 1,370 crore for April-June 2019-20. Total income came almost flat at Rs 19,125.57 crore in Q1.

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