Bain Capital sells stake worth Rs 3,720 crore in Axis Bank

Private equity giant Bain Capital has divested Rs 3,720 crore ($448 million) stake in private lender Axis Bank. The transaction, executed through a block trade on Wednesday, saw Bain affiliates BC Asia Investments VII, BC Asia Investments III and Integral Investments South Asia IV sold 3.34 crore shares, constituting a 1.1 per cent stake in Axis Bank, at a Rs 1,119.70 per share.

While the exact extent of Bain Capital's remaining stake in Axis Bank remains undisclosed, the sale price represented a 1 per cent discount to Axis Bank's closing price on Tuesday. Despite an initial dip in the share value, Axis Bank's stock managed to recover, ultimately ending 1.1 per cent lower on Wednesday.

Stock exchange data indicated that approximately 3.34 crore Axis Bank shares changed hands in block deals during the transaction. However, the identities of the buyers in these deals were not immediately available.

Bain Capital initially invested Rs 6,854 crore in Axis Bank in November 2017 and has gradually divested its holdings through several block deals. In June of the current year, the private equity firm sold a 0.7 per cent stake, followed by another offloading of shares in November 2022.

Axis Bank's shares have showcased impressive growth, more than doubling since Bain's initial investment in 2017. This performance has outpaced the Nifty Bank index over the same period. In the current year alone, Axis Bank shares have surged approximately 20 per cent, underscoring the bank's robust market position and investor confidence.

The block trade represents a strategic financial move for both Bain Capital and Axis Bank, reflecting the dynamism of the banking sector and the evolving strategies of major financial players in the region.