Private equity player Bain Capital in talks to up stake in Axis Bank.

• Private equity (PE) player Bain Capital has held preliminary talks with Axis Bank to invest in a possible fresh issuance of shares by the bank. US-based Bain holds a 4.6 per cent stake in the lender.
• However, it did not participate in the bank’s fund raising efforts last year, through which the lender raised $1.76 billion by selling shares to institutional investors including Singapore’s sovereign fund GIC. Before that, Bain’s shareholding stood at 5 per cent.
• In 2017, the lender had approved and conducted a sale of 9 per cent stake to raise Rs 11,626 crore, in a round led by Bain Capital. The PE fund invested Rs 6,854 crore and deal was concluded at Rs 525 a share, while the issue price of the convertible warrants stood at Rs 565.
• PE funds can pick up to 5 per cent in a bank under the automatic route, but could go up to 10 per cent with permission from the Reserve Bank of India, according to rules.
• While Axis Bank promoters have 16.35 per cent stake, foreign portfolio investors have 45.49 per cent stake in the lender, and MFs control 20.51 per cent.
• The bank started looking to raise funds after its asset portfolio, which comprised Anil Ambani group firms and Subhash Chandra’s Essel group, came under serious pressure.