Entities owned by the private equity firm are likely to sell 3.34 crore shares, representing 1.1% stake in the lender.
The floor price for the sale has been set at Rs 1,109 a share, a discount of about 2% from the current market price. On Tuesday, shares of Axis Bank ended 1.3% higher on the National Stock Exchange at Rs 1,131.
If the deal comes through, this will be the second time in 2023 that the private equity firm is selling a stake in the private sector lender.
In June, Bain Capital had sold 0.7% stake in Axis Bank at an average price of Rs 968 apiece, aggregating Rs 2,178 crore.
Prior to this, the private equity firm had sold 1.2% stake in October 2022.
The sale that took place in June saw many foreign portfolio investors pick up a stake in the lender. Some of the prominent ones were Goldman Sachs, Morgan Stanley, Societe Generale, Kuwait Investment Authority, and Ghisallo Fund among others. In November 2017, Boston-headquartered Bain Capital led a consortium that invested $1.8 billion in Axis Bank to help shore up the lender’s capital base. The consortium had invested capital at Rs 525 per share. Bain Capital invested around Rs 6,854 crore.
While the banking sector as a whole has relatively underperformed in 2023, Axis Bank stock has given benchmark-beating returns of more than 21% year-to-date.
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