Bain Capital Initiates $430 Mn Block Deal, Plans Exit From Axis Bank

Bain Capital is set to exit Axis Bank entirely, launching a block deal worth approximately USD 430 million to dilute its remaining stake, according to sources familiar with the matter. The deal aims to clean up Bain Capital's investment in the private sector lender.

Entities associated with Bain Capital have initiated the block deal, representing a full exit for the private equity major, insiders revealed. The offer price range for the deal is reportedly between Rs 1,071 and Rs 1,076.05 per share, with Axis Bank's closing price on 8 April at Rs 1,076.05 apiece.

BofA Securities is reportedly advising on the transaction, with selling entities including Integral Investments South Asia IV, BC Asia Investments VII and BC Asia Investments III. However, both BofA Securities and Bain Capital declined to comment on the matter.

Previously, on 13 December, it was reported that Bain Capital was looking to sell a 1.1 per cent stake in Axis Bank as part of a USD 444 million block deal. Since then, the lender's stock price has seen a 27.10 per cent increase over the past year.

In November 2017, Bain Capital made a significant investment of Rs 6,854 crore in Axis Bank, one of the largest private equity investments in the Indian banking sector. Since then, the private equity firm has gradually reduced its stake through block deals.