Bain Capital Plans $429M Stake Sale in India's Axis Bank

Bain Capital plans to sell $429 million stake in Axis Bank, marking its exit from the Indian lender. Learn about the significant divestment move here.

Apr 8, 2024 - 12:14
Apr 8, 2024 - 12:14
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Bain Capital Plans $429M Stake Sale in India's Axis Bank
Bain Capital Plans $429M Stake Sale in India's Axis Bank

Bain Capital, a prominent private equity firm, is set to sell its stake worth $429 million in India's Axis Bank, according to a term sheet reviewed by Reuters. This move marks Bain Capital's complete exit from the Indian private lender, a source familiar with the matter confirmed to Reuters.

The equity firm initially acquired shares in Axis Bank back in November 2017. With this upcoming stake sale, Bain Capital will offload its entire holding in the bank. The sale involves approximately 33.40 million shares of Axis Bank, representing slightly over a 1% stake in the institution. The offer price for the shares is expected to range between 1,071 rupees to 1,076.05 rupees per share, as indicated by the term sheet.

Interestingly, the lower band of the offer price comes at a 0.5% discount compared to the bank's closing price on the preceding Monday.

This divestment follows Bain Capital's earlier share sales in Axis Bank, with transactions worth $448 million in December and partial stake offloads in November 2022.

BofA Securities India has been designated as the sole bookrunner for the deal, overseeing the entire transaction process.

Despite Axis Bank's share value more than doubling since Bain Capital's initial investment, the shares have experienced a 2.4% decline in the current year.

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