New Delhi, Aug 11 (IANS): Axis Bank has raised Rs 10,000 crore through Qualified Institutional Placement at a price of Rs 420.10 per share.

The bank announced the opening of its QIP last week to raise funds to enhance its capital adequacy in accordance with regulatory requirements, its growth strategy, to address risks emanating from the Covid-19 pandemic and for general corporate purposes.

The fund raising was approved by the bank's shareholders at its Annual General Meeting on July 31.

In a statement on Tuesday, the bank said that despite a challenging macro-economic environment, the placement has witnessed strong reception from the global and domestic investor community, including several large foreign portfolio investors, domestic mutual funds and insurance companies.

"The deal was oversubscribed with the aggregate final transaction size being Rs 10,000 crore. The QIP issuance was done at a price of Rs 420.10 per equity share," it said.

Amitabh Chaudhry, MD & CEO, Axis Bank said: "We have successfully closed our QIP of Rs 10,000 crore. We have received great response from global and local investors alike, and I am grateful to them for their continued faith in the Axis Bank franchise."

He added that the bank is well placed to leverage all the possible growth opportunities that will come in as the economy opens up and is in a strong position to combat the challenges that emanate from the Covid-19 pandemic crisis.

"We believe in the strong fundamentals of the Indian economy and based on our vision for growth, profitability and sustainability, will keep delivering the best value to our customers, shareholders and investors," the CEO said.

Shares of Axis Bank surged on Tuesday post the successful fundraising. At 11.50 a.m., its shares on the BSE were trading at Rs 439.85, higher by Rs 8.90 or 2.07 per cent from its previous close. The shares price closed at Rs 448, higher by Rs 17.05 or 3.96 per cent.