Mumbai: Private investment firm Bain Capital is set to sell its stake worth $267 million in Axis Bank, one of India’s leading private lenders, via a block deal, according to sources cited by CNBC TV-18 on June 14. The offer price range for the block deal is expected to be between Rs 966 and Rs 977.70, representing a discount of 0-1.4 percent compared to the current market price.
Bain Capital currently holds a 1.3 percent stake in Axis Bank as a minority shareholder, as per the latest information shared with the exchanges. Through the upcoming block deal, the US-based company plans to sell 0.7 percent of its total holding.
On June 14, Axis Bank’s shares experienced a decline during the trading session, settling at Rs 977.75 on the BSE, marking a 0.88 percent decrease from the previous day’s closing price.
Axis Bank reported a net loss of Rs 5,728.42 crore in the quarter ending March 2023. This loss was primarily attributed to the acquisition cost of Citi Bank’s India consumer business during the same period. However, excluding the impact of the deal, the bank’s profit for the quarter would have been Rs 6,625.29 crore, reflecting a significant 61 percent growth compared to the reported profit of Rs 4,117.77 crore in the corresponding period of the previous fiscal year.
Additionally, the lender’s net interest income, the difference between interest earned and interest expended, increased by 33.1 percent year-on-year to reach Rs 11,742.2 crore during the same period.
The divestment of Bain Capital’s stake in Axis Bank highlights the ongoing dynamics in the banking sector and the investment decisions made by key market players. As the transaction progresses, market observers will closely monitor the developments and the potential impact on Axis Bank’s stock performance.
