Bain Capital to offload Axis Bank stake in block deal: Sources

According to insider sources, Axis Bank is set to undergo a block deal with an offer price range of Rs 966 to Rs 977.70. This range represents a discount of 0-1.4% compared to the current market price. Bain Capital, a minority shareholder in the bank holding a 1.3% stake, is planning to sell 0.7% of its shares through this block deal, as reported by CNBC TV-18.

On June 14, Axis Bank's shares experienced a decline, closing at Rs 977.75 on the BSE. This marked a 0.88% decrease from the previous day's closing price.

During the quarter ending in March 2023, Axis Bank reported a net loss of Rs 5,728.42 crore, primarily attributed to the costs associated with acquiring Citibank's India consumer business.

However, excluding the impact of this deal, the bank's profit for the quarter would have been Rs 6,625.29 crore, indicating a substantial growth of 61% compared to the corresponding period in the previous fiscal year. Additionally, the net interest income, which measures the difference between interest earned and interest expended, experienced a significant increase of 33.1% year-on-year, reaching Rs 11,742.2 crore in the same quarter.

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Overall, Axis Bank's block deal, coupled with its financial performance and the market's current outlook, highlights significant developments in the banking sector and the broader economic landscape.