Axis Bank Shares Falls On Fund Raising Plans

Axis Bank Shares Falls On Fund Raising Plans

Shares of Axis Bank declined as much as 4.56 per cent from day's highest level to touch an intraday low of Rs 421.30 after the bank informed stock exchanges that its board of directors approved plans to raise Rs 15,000 crore via issuing equity shares. Axis Bank in a regulatory filing said, "Board at its meeting held today has approved the proposal relating to raising of funds not exceeding Rs 15,000 crores through issue of equity shares/ depository receipts and/or any other instruments or securities representing either equity shares and/or convertible securities linked to equity shares including through Qualified Institutions Placement (QIP)/ American Depository Receipts (ADRs)/ Global Depository Receipts (GDRs) program, preferential allotment or such other permissible mode or combinations as may be considered appropriate by the Board."

Axis Bank however noted that the fund raising plan is subject to shareholders approval.

Axis Bank did not clarify how the funds if raised will be utilised.

Axis Bank swung to loss in quarter ended March 2020 as the bank reported loss of Rs 1,387.78 crore as against profit of Rs 1,505.006 crore during the same quarter last year. Axis Bank's asset quality improved as gross non-performing assets as a percentage of total advances came in at 4.86 per cent versus 5 per cent in the previous quarter.

On the BSE, as many as 11.09 lakh Axis Bank shares changed hands compared with an average of 13.59 lakh shares traded daily in the past two weeks.

As of 11:40 am, Axis Bank shares were trading 2 per cent lower at Rs 424.55 underperforming the Sensex which was up 1 per cent and Bank Nifty which was up 0.29 per cent.