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BUZZ-India's Axis Bank hits 13-1/2-mth high on capital raising plan
November 13, 2017 / 4:58 AM / a month ago

BUZZ-India's Axis Bank hits 13-1/2-mth high on capital raising plan

** Shares of Axis Bank Ltd rise as much as 3.6 pct to their highest since Sept 23, 2016

** Bank said on Friday it will raise 116.26 bln rupees ($1.78 bln) by selling shares and warrants to a group of investors including Bain Capital and top Indian insurer Life Insurance Corp (LIC)

** “We see this as a big confidence sign, and the overhang of a likely capital raise (FY19) goes away,” analysts at Deutsche Bank write, raising their PT to 620 rupees from 575 rupees with “buy” rating

** “We now expect stressed asset recognition to accelerate as the quantum of capital infusion adequately covers the provisioning requirement,” analysts at Nomura say, raising their PT to 640 rupees from 610 rupees and reiterating their “buy” rating

** Sixteen of 48 analysts covering stock have “buy” or higher ratings, 18 have “hold”, 14 have “sell” or lower ratings; median PT 522.5 rupees - Thomson Reuters data

** Shares of the bank had gained about 21 pct this year as of Friday’s close ($1 = 65.2850 Indian rupees)

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