Axis Bank shares in focus as Bain Capital likely to sell 0.75% stake today

Shares of Axis Bank will be in focus on Thursday morning amid reports the Boston-based PE firm Bain Capital was looking to sell 0.75 per cent stake in the private lender for up to $267 million or approximately Rs 2,150 crore via block deals today.

As per a media report, the offer price range for the stake sale is Rs 964-Rs 977.70 per share. A total of 22.5 million shares will be sold as part of the deal, as per CNBC TV18.

Axis Bank shares settled at Rs 977.75 on BSE. The offer price range for the block deal suggest up to 1.4 per cent discount to the prevailing Axis Bank price.

The development of Bain divesting a portion of its holding in Axis Bank comes days after Canada Pension Plan Investment Board (CPPIB) sold 1.66 per cent stake, worth $754 million, in Kotak Mahindra Bank at a 5 per cent discount. The Canadian pension fund held a 4.34 per cent stake in the private lender as of March 31, as per Kotak's shareholding pattern.

Axis Bank has an average share price target of Rs 1,108 on the stock, as per Trendlyne, which suggests a 13 per cent potential upside on the stock. Foreign brokerage Jefferies recently said Axis Bank was among its top picks from the financial sector.

Axis Bank, along with four others -- Reliance Industries (RIL), Tata Motors Ltd, State Bank of India and BPCL, contributed 96 per cent of the incremental year-on-year (YoY) accretion in March quarter Nifty earnings.