Axis Bank Rises As Rs 3,465 Cr Shares Trade At Rs 1,120 In Block Deal
On 13 December, Axis Bank shares surged by 1.6 per cent to Rs 1,150 per share following a significant block deal involving approximately 3.1 crore shares valued at Rs 3,465 crore, traded at Rs 1,120 per share. Reports hinted that entities associated with Bain Capital were considering selling stakes, potentially including BC Asia Investments VII, BC Asia Investments III and Integral Investments South Asia IV.
Though buyers and sellers remained undisclosed, the offer floor price of Rs 1,120 marked a 1 per cent discount from the previous day's closing price of Rs 1,131. Over the last month, Axis Bank stocks have risen by 10 per cent, outpacing the Bank Nifty index's 7 per cent growth, hitting a 52-week high of Rs 1,151 on 5 December.
In the July-September quarter, Axis Bank witnessed a 10 per cent year-on-year growth in standalone net profit, with a 19 per cent rise in net interest income. Notably, there was an improvement in asset quality, as seen in the decline of gross non-performing asset (GNPA) ratio to 1.73 per cent and net NPA dropping to 0.3 per cent.
Analysts from Macquarie indicated an expectation for Axis Bank's credit costs to normalise in the medium term while staying elevated in the near future. Despite the Reserve Bank of India's new risk-weight norms, the analysts believed profitability ratios would be sustained. Macquarie maintained a “neutral” rating with a target price of Rs 980.
