Bain makes $179m partial exit from India's Axis Bank
Bain Capital has generated proceeds of INR 14.9bn (USD 179.7m) through a partial exit from Axis Bank, a listed Indian lender it first backed five years ago.
The private equity firm sold 16.7m shares for INR 891.38 apiece on November 1, according to exchange filings, reducing its holding from 4.24% to 3%. This represented a 1.6% discount to the previous close. Axis’ stock ended the day down 3.76% at INR 871.75, giving the company a market capitalisation of INR 2.78trn and valuing Bain’s remaining stake at INR 83.4bn.
The private equity firm paid INR 68.5bn (then USD 1.05bn) for 4.87% of Axis Bank in 2017 through a combination of equity shares and warrants that. On conversion, it would have a 4.87% interest. The investment – part of a larger deal featuring Capital Group and Life Insurance Corporation of India, among others – was intended to bolster Axis’ capital adequacy ratio.
The bank is India’s third-largest private sector lender with 4,760 branches, 88,540 employees, and INR 11.8trn in total assets, including INR 7.8trn in deposits, as of September 2022. The gross non-performing asset (NPA) ratio was 2.50%, down from 5.9% when Bain invested.
Interest-related income was INR 673.7bn for the 12 months ended March 2022, up from INR 633.5bn a year earlier. Net profit rose from INR 65.9bn to INR 130.2bn over the same period.
Bain’s partial exit coincided with Axis Bank trading at an all-time high. Several other private equity firms have taken advantage of relatively buoyant Indian public markets in recent months to generate partial or full realisations.
KKR sold its entire stake in hospital operator Max Healthcare for INR 91.9bn in August. Days later, The Blackstone Group secured INR 40.4bn through a partial exit from automotive systems and components manufacturer Sona Comstar.
Bain added to its India financial services portfolio as recently as April through the purchase of a 24.98% position in IIFL Wealth Management for INR 33.8bn. It took out positions held by General Atlantic and Fairfax India Holdings.
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