Several large block deals in Axis Bank; Bain Capital likely seller

Six block deals involving a 0.6 stake in Axis Bank took place on the exchanges. Around 2.25 crore shares, or a 0.6 percent stake, changed hands on the exchanges in several block deals amounting to a total of around Rs 2,178 crore.

Even though Moneycontrol could not immediately identify the sellers and buyers, CNBC-TV18 earlier reported citing sources that Bain Capital was looking to offload some of its stake in the company.

At 09.30 am, shares of Axis Bank were trading at Rs 975.20, down 0.2 percent on the National Stock Exchange.

Follow our live blog for all the market action

CNBC-TV18 reported on June 14 that Bain Capital was looking to sell stake for up to $267 million in Axis Bank. The stake stake was expected to be done at a floor price of Rs 964-977.70 per share.

CNBC-TV18 also reported that there will be a lock-in period of 90 days before Bain Capital can further dilute its stake in the lender.

As per the lender’s shareholding data at the end of the March quarter, Bain Capital held a 1.3 percent stake in Axis Bank through its fund BC Asia Investments VII. If Bain Capital is indeed the seller in this deal, it will reduce its holding in the lender to 0.7 percent.

The financials

In the past three  months, the stock has rallied 17.4 percent as against the Sensex’s 9.2 percent gains. The lender also reported a net loss of Rs 5,728.42 crore in January-March, largely due to the buying cost of Citi Bank’s India consumer business during the quarter.

Excluding the deal however, the company would have posted a net profit of Rs 6,625.29 crore for the quarter, reflecting a solid jump of 61 percent from the Rs 4,117.77 crore recorded in the corresponding period last fiscal. The lender’s net interest income, the difference between interest earned and interest expended, grew by 33.1 percent on-year to Rs 11,742.2 crore in the same period.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.??????????????????