Private investment firm Bain Capital plans to sell a portion of its stock from Axis Bank in a block sale on Tuesday, according to media reports.
According to media reports and industry insiders, Bain Capital will sell a 1.24 percent share in the institution valued at Rs 3,350 crore. The floor price is estimated to be Rs 888 per share, a 2 per cent discount to Axis Bank’s Monday closing price.
BC Asia Investments, a subsidiary of Bain Capital, will sell the shares.
Through its affiliates, Bain Capital owns 4.24 per cent of Axis Bank. The shares of Axis Bank closed Monday’s session at Rs 906, up 0.32 percent, and the firm has a market value of Rs 2.78 lakh crore. Year to date, the stock has increased by 30 per cent.
Bain Capital acquired the interest in the bank in November 2017, investing Rs 6,854 crore. Over the last six months, Indian stock markets have seen a flurry of block transactions by private equity and venture capital investors as investors reduced their stakes during market upcycles.
Axis Bank, India’s third largest private lender, posted a combined net profit of 5,330 crore for the September quarter, up from 3,133 crore the previous year.