Axis Bank Said to Seek Up to $1 Billion in Share Sale

Axis Bank Ltd. (AXSB), India’s third- largest non-state lender by market value, rose as much as 3.7 percent today after it began a share sale to raise 55.5 billion rupees ($1 billion).

The bank, based in Mumbai, is offering 39.9 million shares at 1,390 rupees, according to a term sheet obtained by Bloomberg News yesterday. The shares were up 3 percent to 1,455.6 rupees as of 9:34 a.m. local time today.

The sale is India’s largest this year and comes after companies raised 573 billion rupees selling equity in 2012, data compiled by Bloomberg show. Foreign demand for Indian stocks helped lift the benchmark BSE India Sensitive Index (SENSEX) this month to its highest level in more than two years.

Axis Bank is the third-best performer in the 14-stock Bankex index over the last six months. The lender said last month it would offer as many as 45.8 million shares in a so- called qualified institutional placement, a sale earmarked for institutional investors.

As part of the offering, the bank would make a preferential issue of 6.05 million shares to state-owned lenders, including Life Insurance Corp. of India, according to a stock exchange notification on Dec. 27. The placement includes 5.9 million preferential shares, the terms show.

Axis Capital, Citigroup Inc. (C) and JPMorgan Chase & Co. are managing the transaction, two people with knowledge of the matter said yesterday, asking not to be identified as the information is private. The bank began the offering yesterday, it said in a stock exchange filing without offering any additional details.

To contact the reporters on this story: George Smith Alexander in Mumbai at galexander11@bloomberg.net; Anto Antony in Mumbai at aantony1@bloomberg.net; Ruth David in London at rdavid9@bloomberg.net

To contact the editors responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net Jacqueline Simmons at jackiem@bloomberg.net

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