InvestorQ : Is the deal between Axis Bank and Carlyle Group to take a stake in the bank finalized? When is it expected to be finalized?
Mitali Bhutta made post

Is the deal between Axis Bank and Carlyle Group to take a stake in the bank finalized? When is it expected to be finalized?

Answer
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Dawn Cherian answered.
4 months ago


It has been reported in the media and the press that one of the world’s largest and most reputed PE firm, Carlyle Group, could make an investment of around $1 billion in Axis Bank. Over the last few months, Axis Bank has been actively scouting for funds infusion to shore up its capital adequacy in the light of the spike in NPAs. As is normally the practice, both Axis Bank and Carlyle have been non-committal on the topic. The actual structure of the capital raising is not clear and it could be either through a primary issuance or via preferential allotment. The idea is to give Carlyle up to 8% stake in Axis Bank. The last big investment in Axis Bank was by Bain Capital, which had infused $1.8 billion in Nov-17. Axis Bank is not the only one and a number of private banks have sought to infuse capital into the balance sheet to add heft to core capital.