Axis Bank‘s share price witnessed a jump after it announced a Rs 12,325 crore deal with US-based Citigroup.
Axis Bank’s share price on Thursday jumped more than one per cent after the private lender announced that it would acquire US-based Citi’s consumer business in India for Rs 12,325 crore. This is one of the largest deals in the Indian financial services space and would help Axis Bank close the gap with larger peers such as ICICI Bank and HDFC Bank, according to a PTI report.
AXIS BANK SHARE PRICE
Axis Bank’s share price today on BSE was up by 1.32 per cent to Rs 760.10.
You can check the real-time share price of Axis Bank on BSE at https://www.bseindia.com/stock-share-price/axis-bank-ltd/axisbank/532215/ .
On the NSE, Axis Bank’s share price on Thursday rose by 1.32 per cent to Rs 760.35.
Investors can check Axis Bank’s share price on NSE at https://www.nseindia.com/get-quotes/equity?symbol=AXISBANK .
Ahead of the press conference to announce the deal, Axis Bank’s share price on Wednesday gained 1.72 per cent to close at Rs 750.20 apiece on the BSE on Wednesday.
AXIS BANK-CITI DEAL
The two lenders signed a definitive agreement for the sale, which will involve the third largest private lender taking over Citi’s credit cards, personal loans and wealth management businesses that are focused on the affluent segment.
Regulatory approvals are expected in nine months, after which the payment will be made and a complex integration process will begin.
“Axis Bank has grown organically all these years and has scaled well. But our aspirations are bigger. This deal gives us that strategic thrust to close the gap between us and some of our peers,” its chief executive and managing director Amitabh Chaudhry told reporters.
Apart from a consideration of Rs 12,325 crore or USD 1.6 billion which will be paid using the balance sheet strength, the deal also involves an equity requirement of Rs 3,450 crore for the loan book of over Rs 27,400 crore which will get transferred and also a payout of up to Rs 1,500 crore in integration cost, which will be paid by Axis to Citi for servicing the business till the merger gets complete.
The domestic lender’s core capital will be impacted by 1.80 per cent and it will raise capital a few months down the line, Chaudhry said.