Axis Bank gets shareholders#39; approval to raise Rs 11,626 crore

Published On: 08, Dec 2017 | Source: moneycontrol.com

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Axis Bank, the third largest private sector bank in India, has got its shareholders' approval to raise Rs 11,626 crore by selling a 9 percent stake. The bank had already received the approval of its board of directors on November 10.

In its extraordinary general meeting held in Ahmedabad on Friday, the bank's shareholders gave their nod to a proposal to raise equity and equity-linked capital of Rs 11,626 crore (of which equity is Rs 9,063 crore) from a set of marquee investors including entities affiliated with Bain Capital Private Equity, other investors advised by Capital Research, and the bank’s promoter, Life Insurance Corporation of India.

Responding to the shareholders present at the EGM,  Shikha Sharma, MD & CEO, Axis Bank said: “We are honoured by the faith reposed by investors including Bain Capital and our Promoters LIC of India in the long term strategy of the Bank. This investment also reaffirms the confidence that foreign investors have in the India growth story. We are excited about the opportunities that this growth capital creates for us.”

The bank's shareholders also approved the reappointment of Shikha Sharma to lead the bank for another three years, along with her proposed remuneration.

At its meeting on July 26, the bank's board of directors had approved the re-appointment of Shikha Sharma as the Managing Director & CEO of the Bank for a period of 3 years, effective June 1, 2018.