Axis Finance Limited has announced a major capital infusion totaling ₹2,250 crore, marking a significant milestone in its expansion strategy. This primary fundraise—the largest in the company’s history—introduces its first external investor to the fold.
Key Components of the Capital Raise
The funding is structured into two distinct parts:
-
Rights Issue: A ₹1,500 crore investment from its parent organization, Axis Bank.
-
Preferential Allotment: A ₹750 crore infusion from private equity firm Kedaara Capital (pending regulatory approval).
Strategic Objectives
The capital boost is designed to fortify the firm’s Tier 1 capital and enhance its overall capital adequacy ratio. With this strengthened balance sheet, Axis Finance aims to scale its operations across three primary pillars:
-
Retail Lending: Targeting individual consumers.
-
MSME Credit: Supporting micro, small, and medium enterprises.
-
Wholesale Lending: Expanding large-scale corporate financing.
Executive Perspectives
“This infusion reflects our group’s long-term commitment to scaling our NBFC business while maintaining a rigorous focus on governance and risk management.” — Amitabh Chaudhry, MD & CEO, Axis Bank
Sai Giridhar, MD & CEO of Axis Finance, emphasized that the funds will be channeled into technology and distribution to meet India’s rising credit demand. Meanwhile, Kedaara Capital’s Sunish Sharma highlighted the “strong structural growth opportunities” within the Indian credit landscape as a primary driver for the investment.
Advisory and Legal
The transaction was facilitated by financial advisors Morgan Stanley and Axis Capital. Legal counsel was provided by Cyril Amarchand Mangaldas and Veritas Legal.
