Thursday, 29 June 2017

Axis Bank soars 4% post fundraise of Rs 3,500 crore by issuing debt securities

The board of directors of the bank approved and allotted 35,000 unsecured subordinated perpetual additional tier-I Basel III compliant non-convertible debentures aggregating Rs 3,500 crore on a private placement basis.

Shares of Axis Bank soared 4 percent intraday on Thursday as investors cheered fresh fundraising by the bank.

The private sector lender raised Rs 3,500 crore by issuing debt securities on a private placement basis.

The board of directors of the bank approved and allotted 35,000 unsecured subordinated perpetual additional tier-I Basel III compliant non-convertible debentures aggregating Rs 3,500 crore on a private placement basis, it said in a regulatory filing

"These debentures will strengthen the overall capital adequacy ratio of the bank by an estimated 74 basis points (0.74 percentage) and also enhance the long term resources," the bank said in its statement.

On a separate note, the bank also informed the exchanges regarding its exposure to the accounts sent to under Insolvency and Bankruptcy Code (IBC).

The bank has exposure to 8 out of the 12 accounts under IBC and said that its fund-based outstanding on the 8 accounts stood at Rs 5,071 crore. Meanwhile, the non fund-based outstanding stood at Rs 212 crore. Further, it told the bourses that 80 percent of the total outstanding was secured. Additionally the accounts are backed by hard assets.

The stock has seen positive trajectory in the recent past, rising over 1 percent in the past one month, while its three-day gain also stood at 1 percent.

At 10:10 hrs Axis Bank was quoting at Rs 511.65, up Rs 17.15, or 3.47 percent on the BSE. It touched an intraday high of Rs 514.15 and an intraday low of Rs 497.00.

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