Axis Bank shares tank over 3.8% after Bain Capital offloads 1.2 percent stake; details here

American private equity (PE) major Bain Capital has sold its 1.24 percent stake in private sector lender Axis Bank via a block deal today, 1 November. The stock of Axis Bank tanked after the news of the deal broke, with the shares of the lender plunging over 3.8 percent on the National Stock Exchange by the end of the day. The shares of Axis Bank ended at Rs 871.50 apiece. Bain Capital held 4.24 percent stake via three affiliates as of 30 September this year. The firm planned to raise $410 million through selling of stake, with an average price at Rs 894 per equity. Bain Capital had bought the stake in November 2017, making an investment of Rs 6,854 crore in the bank.

Axis Bank saw a consolidated net profit of Rs 5,330 crore for the quarter ended September 2022 in comparison to Rs 3,133 crore in the year-ago quarter. Net interest income rose by 31 percent from the previous year to Rs 10,360 crore in the quarter. During the quarter, Net Interest Margin (NIM) stood at 3.96 percent. The bank saw an improvement in asset quality in the September quarter. Gross Non-Performing Asset ratio fell to 2.5 percent as on 30 September, from 2.76 percent in the June quarter and 3.53 percent a year ago.

Indian stock markets have witnessed a flurry of block trades by private equity and venture capital investors in the last few months as investors pared their stakes amid brief upcycles in the markets.

So far, private equity company KKR sold its Rs 9,185 crore stake in Max Healthcare in the largest PE block deal in the Indian stock markets. Blackstone offloaded large stakes- a Rs 4,000 crore stake in auto parts maker Sona BLW Precision Forgings and Rs 2,650 crore stake in Embassy Office Parks. Others like Tiger Global and Temasek have also divested their holdings in listed companies over the recent months.

Even some promoters have joined the bandwagon to sell part of their holdings. The promoters of Triveni Turbine sold a Rs 1,600 crore stake in the company to some investors, while Biocon Ltd sold a Rs 1200 crore stake in Syngene to mobilise funds.

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