Axis, ICICI QIPs take private bank mop-up to Rs 53,000 crore

Mumbai: Axis Bank and HDFC raised Rs 10,000 crore each through qualified institutional placements (QIPs) and ICICI Bank is set to add Rs 15,000 crore to the mop-up by lenders, which is set to cross Rs 70,000 crore.

Of this, the mop-up by private banks is nearly Rs 53,000 crore, which is nearly half of the total market cap of nationalised banks (Rs 1.1 lakh crore). The total market cap of public sector banks (including SBI) is Rs 2.8 lakh crore as against Rs 14.7 lakh crore for private banks (which now includes IDBI Bank).

Axis Bank’s QIP was subscribed over 3.5 times with investment from ICICI Prudential Mutual Fund, Aditya Birla Sun Life Mutual Fund, Harris Associates, Fidelity Investments, T Rowe Price, Bajaj Life Insurance and Max Life Insurance, among others.

The bank allotted 238 million shares at a price of Rs 420 per share, which is a 5% discount to the floor price of Rs 442 set earlier, it informed the exchanges. The paid-up the equity share capital has now gone up to Rs 612 crore as compared to Rs 564 crore earlier. The bank’s total capital adequacy has moved up by nearly two percentage points to 19%.

Meanwhile, HDFC raised Rs 10,000 crore by issuing shares to institutional investors like Government of Singapore at 13.37% and Invesco Oppenheimer Developing Markets Fund 5.54 %. HDFC also raised Rs 3,693 crore through 3-year non-convertible debentures.