Axis Bank gains over 2% on debt repayment by Essar Group through sale of BPO business
Axis Bank rallied 2.5 percent intraday Monday on debt repayment by Essar Group through sale of BPO business.
The Essar Group will repay debt of various financial institutions including Axis Bank through BPO business sale proceeds.
Private equity firm Capital Square Partners has acquired Aegis BPO from Essar Group for USD 300 million.
Capital Square Partners had agreed to buy Aegis for around Rs 2,000 crore in April 2017.
Last week, sources told CNBC-TV18 that Axis Bank has received approximately Rs 1,000 crore from BPO company, Aegis this quarter.
The bank will show this Rs 1,000 crore recovery in Q3FY18 on Aegis BPO’s NPA account.
Axis Bank is the largest lender to Aegis.
At 14:05 hours IST, the stock price was quoting at Rs 557.60, up Rs 12.80, or 2.35 percent on the BSE.