Axis Bank raises Rs 12,500 cr through QIP; fund to be used for expanding business

New Delhi: Axis Bank on Thursday said it has raised Rs 12,500 crore through qualified institutional placement (QIP) to fund business growth. The private sector lender is the second after Yes Bank to raise funds through QIP this year. Yes Bank mopped up Rs 1,930 crore through the route. “We understand that the transaction is the largest ever QIP by a private sector issuer in India. Despite a challenging macro-economic and market environment, the placement has witnessed strong reception from the global and domestic investor community,” Axis Bank said in a statement. [caption id=“attachment_3862013” align=“alignleft” width=“380”] Representational image. Reuters[/caption] In 2017, state-owned SBI had raised Rs 15,000 crore through QIP. The statement further said the deal was oversubscribed with the aggregate final transaction size being Rs 12,500 crore. The QIP issuance price of Rs 629 per share is at a discount of 4.91 percent to the floor price of Rs 661.50 per unit, it said. The transaction was anchored by several large marquee foreign portfolio investors (FPIs), domestic mutual funds and insurance companies, it added. “We will strive to ensure that we continue our growth journey and keep delivering the best value to our customers, shareholders and investors consistently and on a sustainable basis,” Axis Bank MD Amitabh Chaudhry said. For the first quarter ended June 2019, Axis Bank reported 95.4 percent jump in standalone net profit to Rs 1,370.08 crore aided by a healthy rise in income. The bank had posted a net profit of Rs 701.09 crore in the April-June quarter of the previous fiscal