Axis Bank Ltd. is set to undertake a secondary offering of approximately 33.4 million shares through an accelerated bookbuild offering. The issuer, Axis Bank Ltd., will not be issuing new shares as part of this offering; instead, the entire offering consists of secondary shares. The selling shareholders, namely BC Asia Investments VII Limited, BC Asia Investments III Limited, and Integral Investments South Asia IV, are entities divesting their stakes in the company.
This Accelerated Bookbuild Offering of Ordinary Shares will be distributed under Rule 144A to Qualified Institutional Buyers and Regulation S. The offer floor price is set at INR 1,109.00 per share, representing a 1.95% discount to the last closing share price of INR 1,131.00 on the NSE as of December 12, 2023.
The total offering size is approximately 33.4 million shares, equivalent to around US$444 million at the offer price floor. This offering constitutes 1.1% of the outstanding share capital of Axis Bank. Importantly, this entire offering is part of the secondary market, with no primary shares being introduced.
As part of the terms, the selling shareholders commit to a lock-up period for their residual stake, obligating them to refrain from selling any additional shares for a period of 90 days post the completion of the offering. This lock-up period is a standard practice aimed at providing stability to the stock price in the immediate aftermath of a secondary offering.
