Bain Capital set to trim stake in Axis Bank with anticipated $444 million block deal

Bain Capital, a private equity major, is planning to sell a further stake in Axis Bank through a block deal worth $444 million. Bain Capital initially entered Axis Bank in November 2017 with a significant investment of Rs 6,854 crore as part of a capital raise. Since then, it has been gradually reducing its stake through block deals.

According to sources, entities associated with Bain Capital are looking to sell a 1.1% stake in Axis Bank. The offer floor price for the block deal is reported to be Rs 1,109 per share, with a discount of 1.95% to the last closing price of Axis Bank at Rs 1,131 per share.

Goldman Sachs is said to be advising on the proposed transaction, as confirmed by a third person familiar with the matter. However, there has been no immediate comment from Bain Capital, Axis Bank, or Goldman Sachs.

The Axis Bank stock has witnessed a 10.3% increase in the last month. The report emphasizes that this move comes six years after Bain Capital's initial investment in Axis Bank. The gradual dilution of Bain Capital's stake indicates its exit strategy from the investment.

It's worth noting that the information is based on sources who spoke on the condition of anonymity, and there has been no official comment from the involved parties as of the article's publication.