What's cooking in Axis Bank? Stock gains over 7%
The reason behind the rise of Axis Bank stock was due to execution stake in commodity services provider NSDL.
There was an immense uptrend in private lender Axis Bank share price, so much so, that it was among the top performers taking second spot after ICICI Bank, which was in lead. Currently, the stock price was trading at Rs 562.95 up by Rs 25.60 per piece or 4.76% at around 1422 hrs.The reason behind the rise was due to execution stake in commodity services provider NSDL.
Intra day high was Rs 576.10 which means over all gain was touched by 7% on BSE Sensex.
In an notification, Axis Bank stated that, it has sold 20,00,000 shares of National Securities Depository Limited ("NSDL") stands terminated.
NSDL is primarily engaged in the business of providing depository services. NSDL has total assets of Rs 798 crores and total income of Rs 310 crores in FY 2018.
The Bank has executed an agreement for sale of 19,79,900 equity shares at Rs 825/- per share with HDFC Bank.
This means Axis Bank is offloading about 4.95% of its stake in NSDL to HDFC Bank.
Which results in a total cash consideration of Rs 163.34 crores.
Both Axis Bank and HDFC Bank currently hold 5% stake each in NSDL.
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Post transaction Axis Bank's holding will come down to 0.05% on the other hand, HDFC Bank's stake will go up by 9.95%.