Key Takeaways
- • Bain Capital exited a further slice of Axis Bank through a block deal on Tuesday, April 9, 2024, with more than 3 crore (30 million) shares worth ₹3,588 crore changing hands on the exchanges.
- • The private equity firm sold about 3.34 crore shares at prices between ₹1,071 and ₹1,076.05 per share, according to market reports.
- • Axis Bank shares traded up about 0.64% at ₹1,082.9 at 1:10 PM, after touching an intraday high of ₹1,090 on NSE.
- • Bain Capital's entry in 2017 cost around ₹6,854 crore, so the block sale continues a year-long programme of gradual divestment through large deals.
- • Buyers were not immediately identified; exchange data after market close was expected to disclose them.
Summary
Bain Capital sold more than 3 crore Axis Bank shares worth ₹3,588 crore through a block deal on Tuesday, April 9, 2024, according to market reports cited by Upstox. The transaction marks a further step in the private equity firm's exit from the private sector lender. Bain Capital had been reducing its holding through block trades over the past year.
The firm sold 3.34 crore shares in large deals priced between ₹1,071 and ₹1,076.05 per share. BSE data showed the stock reached a high of ₹1,094 per share as more than 3.35 crore shares changed hands on the exchange, against a two-week average trade volume of about 7.54 lakh shares on BSE. Axis Bank shares were trading 0.64% higher at ₹1,082.9 at 1:10 PM, after a high of ₹1,090 on NSE, up 1.3% from the previous close. The buyers of the shares had not been confirmed at the time of reporting, with details expected after exchanges updated their data following market close.
Bain Capital's investment history in the bank provides context for the exit. The firm invested about ₹6,854 crore in 2017, when Axis Bank raised ₹11,626 crore through equity and warrant issuance. Its recent sales include a 1.1% stake sold in December 2023 for ₹3,700 crore at ₹1,119.70 per share, through entities Integral Investments South Asia IV, BC Asia Investments VII and BC Asia Investments III. Earlier, the firm sold a 0.7% stake for ₹2,178 crore at ₹968 per share in June 2023, and in November 2022 sold 1.66 crore shares at ₹891.38 per share. It also divested a 1.2% stake in October 2022.
The pricing of Tuesday's trades was below the December 2023 sale price of ₹1,119.70 per share, though the shares remained well above the June 2023 and late-2022 levels. Market reports described the sale as a block exit, and the full set of buyers and final transaction details were not available in the source at the time of publication.
The firm sold 3.34 crore shares in large deals priced between ₹1,071 and ₹1,076.05 per share. BSE data showed the stock reached a high of ₹1,094 per share as more than 3.35 crore shares changed hands on the exchange, against a two-week average trade volume of about 7.54 lakh shares on BSE. Axis Bank shares were trading 0.64% higher at ₹1,082.9 at 1:10 PM, after a high of ₹1,090 on NSE, up 1.3% from the previous close. The buyers of the shares had not been confirmed at the time of reporting, with details expected after exchanges updated their data following market close.
Bain Capital's investment history in the bank provides context for the exit. The firm invested about ₹6,854 crore in 2017, when Axis Bank raised ₹11,626 crore through equity and warrant issuance. Its recent sales include a 1.1% stake sold in December 2023 for ₹3,700 crore at ₹1,119.70 per share, through entities Integral Investments South Asia IV, BC Asia Investments VII and BC Asia Investments III. Earlier, the firm sold a 0.7% stake for ₹2,178 crore at ₹968 per share in June 2023, and in November 2022 sold 1.66 crore shares at ₹891.38 per share. It also divested a 1.2% stake in October 2022.
The pricing of Tuesday's trades was below the December 2023 sale price of ₹1,119.70 per share, though the shares remained well above the June 2023 and late-2022 levels. Market reports described the sale as a block exit, and the full set of buyers and final transaction details were not available in the source at the time of publication.
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