Mumbai: Bain Capital LLC is likely to convert warrants worth Rs 2,563 crore into equity shares in Axis BankNSE -1.31 % in the next one month, making a whopping 36 per cent gain for the Boston-headquartered private equity fund in 16 months, while bolstering the lender’s capital.
The warrants, which are due to mature within a month, will be converted by June, multiple sources told ET.
The fund, co-founded by former American presidential candidate of the Republican Party Mitt Romney, invested Rs 11,626 crore in Axis Bank through a combination of equity and warrants. Three-fourths were equity while the rest were warrants and was one of the biggest PE investments in India.
Bain Capital was not immediately available for comments.
“Around 4.5 crore warrants issued at a price of Rs 565 per share to various investors under Sebi norms are due for conversion, on or before June 18, 2019, said Jairam Sridharan, CFO, Axis Bank.
“While 25 per cent was paid at the time of issue of the said warrants, the balance 75 per cent of the issue price would have to be paid before the said date,” he said.
“The shares so issued on conversion would be locked in for one year from date of trading permission,” the CFO said.
Axis Bank shares closed at Rs 771.2 last Thursday. Markets were shut on Friday.
Earlier in December 2017, Axis Bank board had approved issuing four crore warrants to Bain Capital Asia Inves ..
For more information Top 10 Stock Advisory Company Indore
The warrants, which are due to mature within a month, will be converted by June, multiple sources told ET.
The fund, co-founded by former American presidential candidate of the Republican Party Mitt Romney, invested Rs 11,626 crore in Axis Bank through a combination of equity and warrants. Three-fourths were equity while the rest were warrants and was one of the biggest PE investments in India.
Bain Capital was not immediately available for comments.
“Around 4.5 crore warrants issued at a price of Rs 565 per share to various investors under Sebi norms are due for conversion, on or before June 18, 2019, said Jairam Sridharan, CFO, Axis Bank.
“While 25 per cent was paid at the time of issue of the said warrants, the balance 75 per cent of the issue price would have to be paid before the said date,” he said.
“The shares so issued on conversion would be locked in for one year from date of trading permission,” the CFO said.
Axis Bank shares closed at Rs 771.2 last Thursday. Markets were shut on Friday.
Earlier in December 2017, Axis Bank board had approved issuing four crore warrants to Bain Capital Asia Inves ..
For more information Top 10 Stock Advisory Company Indore
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