Bain Capital Plans to Offload 1.08% Stake Valued at ₹3,575 Crore in Axis Bank

8 Apr 2024 , 09:35 PM

According to a term sheet released by BofA Securities, Private Equity Company Bain Capital plans to sell 1.08% of its investment in Axis Bank, or 33.37 million shares, for ₹3,575 Crore on Tuesday in an open market transaction.

The offer price has been set between ₹1,071.0 and ₹1,076.05 per share, indicating a small decrease from Monday’s closing price of ₹1,076.05 per share. BofA Securities India is the only bookrunner for the transaction.

Integral Investments South Asia IV, a Bain Capital subsidiary, intends to offload 8.35 million shares, while BC Asia Investments VII and BC Asia Investments III plan to sell 14.5 million and 10.5 million shares, respectively.

Bain Capital purchased a stake in Axis Bank in November 2017. In December, the private equity company sold a 1.1% interest in the private sector lender on the open market for around ₹3,700 Crore.

During June, Bain Capital divested a 0.7% stake in Axis Bank at an average price of ₹968 per share, amounting to ₹2,178 Crore in total. Prior to this, the private equity fund sold a 1.2% share in October of 2022. With the planned transaction, Bain Capital will depart the bank entirely.

Axis Bank shares have increased by 43% over the previous five years, outperforming the benchmark Sensex’s 93% increase and the BSE Bankex index’s 64% increase.

At around 9.26 AM, Axis Bank was trading 0.20% higher at ₹1,078.15 per piece, against the previous close of ₹1,076.05 on NSE. The counter touched an intraday high and low of ₹1,090, and ₹1,071.35 respectively.

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