Axis Bank GDRs, QIPs yield $720 mn

Axis Bank, following the trend initiated by real estate players in 2009, raised $ 720 million (Rs 3,470 crore) through qualified institutional placement (QIP) and global depository receipt (GDR) issues on Friday, reports HT Correspondent.

Updated on: Sep 18, 2009, 21:25:57 IST

Hindustan Times | By HT Correspondent, New Delhi

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Axis Bank, following the trend initiated by real estate players in 2009, raised $ 720 million (Rs 3,470 crore) through qualified institutional placement (QIP) and global depository receipt (GDR) issues on Friday.

This will help the bank improve its Tier I capital and fund its expansion plans, said a source close to the development.

“The issue that opened on Thursday received interest from global investors along with domestic mutual funds and insurance firms,” said the source on condition of anonymity.

The shares were issued at Rs 906.70 per share (a discount of 0.5 per cent over Thursday’s closing price). However they ended Friday with a gain of 1 per cent at Rs 920 on the National Stock Exchange.

Many Indian companies raised fund through the QIP route after global liquidity eased up beginning April, 2009.

While DLF raised Rs 3,860 crore, Indiabulls Real Estate and Unitech raised Rs 2,656 crore and Rs 1,621 crore respectively through their issues.

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