Top Loser on Sensex, Nifty Bank & More: Here’s Why Axis Bank Tanked 4% Today
Shares of the private sector lender Axis Bank (NS:AXBK) tanked on Thursday, closing the session nearly 4% lower and hitting the day’s low at Rs 841 apiece.
The Government initiated a stake sale of its entire holding in the private lender on Nov 10 through offer-for-sale or OFS.
The country’s third largest private lender informed the bourses on Wednesday that the seller has proposed to offload 46.5 million equity shares of the company, translating to a 1.55% stake held on Nov 11-12 at a floor price of Rs 830.63/share.
The offer opened for non-retail investors on Thursday, while retail investors can bid on Nov 11, with a 10% OFS reserved for the latter. Further, at least 25% of the offer shares will be reserved for mutual house funds and insurance companies.
In the morning session on Thursday, the non-retail category of the OFS witnessed a subscription of 4%, mopping up bids for 16 lakh shares against a 4.18 crore share issue size.
ICICI Securities (NS:ICCI), Citigroup (NYSE:C) Global Markets India and Morgan Stanley (NYSE:MS) India are the bankers overseeing the deal.
In May 2021, the government sold a 1.95% stake in Axis Bank held through SUUTI raising about Rs 4,000 crore.
On Thursday, Axis Bank was the worst-performing stock not just on the headline index Sensex but also on sectoral indices, including Nifty Bank, Nifty Financial Services and Nifty Private Bank.
I apologize, the information I provided earlier about Axis Bank was outdated. Luckily, your most recent query specifies a more recent event – the 4% drop in Axis Bank’s share price on a specific day.
Based on your query about Axis Bank and the date (today being April 9, 2024), I can’t find news articles mentioning a 4% drop today. However, there was news about a 4% decline in Axis Bank shares on Wednesday, October 4th, 2023.
Here are two possible explanations for the 4% drop in Axis Bank shares on October 4th, 2023, based on news reports from that time:
- Speculative QIP Report: A media report claiming Axis Bank planned to raise Rs 10,000 crore through a Qualified Institutional Placement (QIP) might have triggered the sell-off. The bank itself denied these reports, calling them “speculative and factually incorrect” [BusinessToday].
It’s also possible there were other reasons for the price drop, but media reports suggest this speculative news might have been a significant factor.
If you’re interested in recent news about Axis Bank, I can search for articles dated around April 9, 2024.