India’s third largest private lender Axis Bank Ltd will be raising up to Rs 15,000 crore. The bank’s board has cleared the fund-raising via the issuance of various instruments.
The lender will now be raising the money through issuance of equity shares or depository receipts, or any other adaptable securities synced to equity shares, said Axis Bank in an exchange filing.
The lender sad that it will be raising money via a qualified institutions placement (QIP) or issuance of American depository receipts (ADRs) or a global depository receipts (GDRs) programme. The lender is likely to adopt the preferential allotment route to raise the capital. The mode of capital fund raising will be subject to final approval of the board and the bank’s shareholders at the upcoming 26th Annual General Meeting of the bank.
With this development, Axis Bank is now a part of the trend of equity capital raising, which is being enacted by many other banks to strengthen their capital buffers for the future.