Market Reacts To Bain Capital's Intention To Offload Axis Bank Stake, Stock Slips 1%

Axis Bank's shares fell over 1 per cent on Wednesday amid news of Bain Capital planning to offload a 1.1 per cent stake in the private lender
Axis Bank
Axis Bank

Axis Bank witnessed a decline of over 1 per cent in its stock price on Wednesday during morning trade following reports from the media suggesting that Bain Capital, through three of its entities, is expected to divest a 1.1 per cent stake in the private lender.

BC Asia Investments VII, BC Asia Investments III, and Integral Investments South Asia IV are expected to be the sellers in this transaction, according to sources familiar with the matter as reported by CNBC-TV18. The agreement includes a mandatory 90-day lock-in period. The specified floor price for the transaction stands at Rs 1,109 per share, reflecting a 1.95 per cent discount to the current market price (CMP) at the National Stock Exchange (NSE), as per sources cited in the report.

At 12:30 pm, the shares of Axis Bank were trading in the negative territory, down by 1.24 per cent or 14 points on the National Stock Exchange.

The US-based private equity firm, Bain Capital had also conducted an open market transaction to divest a 0.7 per cent stake in Axis Bank in June month, amounting to Rs 2,178 crore.

The shares were sold in three tranches by Bain Capital and its affiliates.

In Q2FY24, Axis Bank witnessed a 10 per cent year-on-year (YoY) surge in its standalone net profit, reaching Rs 5,863 crore. Furthermore, the net interest income (NII) for the reporting quarter experienced a 19 per cent YoY increase, totaling Rs 12,314 crore, compared to Rs 10,360 crore in the corresponding quarter of the previous year.

On a year-to-date basis, the shares of the banking firm have soared to more than 18.62 per cent or 175 points on the National Stock Exchange.

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