Top Loser on Sensex & Other Indices: Axis Bank Tanks 4%, Defies Market Mood

By Malvika Gurung

Investing.com -- Shares of the private sector lender Axis Bank (NS: AXBK ) fell 3.75% at Rs 872 apiece while writing after tanking 4% in early trade on Tuesday, led by heavy volumes following reports that the private equity fund Bain Capital would pare stake in the banking major.

Axis Bank was the worst-performing stock on the benchmark index Sensex , along with the sectoral indices Nifty Private Bank and Nifty Financial Services , while being a significant loser on Nifty Bank , defying the market mood.

Multiple news reports stated that the American private equity fund Bain Capital would likely offload a 1.24% stake in Axis Bank, fetching the fund $410 million, approximately Rs 3,400 crore through a bulk deal on Tuesday.

The investment bank JP Morgan is the banker to the block deal, setting the floor price at Rs 888/share, a 2% discount over Monday’s closing price of Rs 906/share.

The volumes, as per exchanges’ data indicate that the Bain Capital deal has already been executed but the details of the transaction have not been ascertained, stated reports.

As of Sept 30, 2022, Bain Capital held a 4.24% stake in the private lender through its entities - BC Asia Investments VII, BC Asia Investments III and Integral Investments South Asia IV.

Despite today’s slide, the banking stock has surged over 20% in the past month, outperforming Sensex.