Axis Bank shares were trading at 358.70 apiece on NSE as of Wednesday 12.45 PM, up by Rs.17.40 or 5.10 per cent from the previous close of Rs. 341.30. The stock touched an intraday high Rs. 362.35 low of Rs 341.50 in the session so far.
In a regulatory filing, Axis Bank on Wednesday clarified that news reports on PE firm Carlyle infusing $1 billion to own up to 8 per cent in the bank as ‘speculative’ and added that the bank has not taken any such decision in this regard.
“We would like to clarify that the news item is speculative and the Bank has not taken any such decision in this regard. As such no disclosure is required to be made under Reg. 30 of the Listing Regulations and the Bank shall keep the Exchange duly informed as and when any decision is taken by it in this matter,” Axis Bank’s statement said.
The clarification comes in the wake of news reports in ET Now and The Economic Times which stated that the PE firm is in talks with Axis Bank for equity infusion.
Quoting people with direct knowledge of the development, The Economic Times reported that, “Private equity major Carlyle has reportedly started talks with Axis Bank, the country’s third-largest private sector lender, to pump in around a billion dollars as growing systemic level stress and the economic slump are pushing banks and shadow lenders to create provision cushions to deal with future asset slippages.”
The report also said that the fund-raising is expected to be via a primary issuance of shares through a preferential allotment route that may result in the PE fund acquiring up to 8 per cent stake in the private sector lender.