Mumbai: Axis Finance Limited (“AFL”), a
non-banking financial company and wholly-owned subsidiary of Axis Bank, today
announced an INR 750 crore primary capital raise from Kedaara Capital via a
preferential issuance. This is in addition to the INR 1,500 crore primary raise
via a rights issue that was approved by Axis Finance’s Board of Directors on
April 17, 2026. This landmark capital raise is AFL’s largest primary raise till
date; as well as its first ever raise from an external investor. Kedaara
Capital’s primary infusion remains subject to customary regulatory approvals.
This
transaction will significantly bolster the company’s capital base and propel
its next phase of growth, further deepening credit penetration in India. With
this primary infusion, AFL’s Tier 1 capital and capital adequacy (CRAR) will
get enhanced. AFL is well-positioned to continue building a leading diversified
lending platform at scale, addressing credit needs across the spectrum of
Retail, MSME and Wholesale segments. With a strong presence across both secured
and unsecured lending, Axis Finance aspires to be the preferred financier for
enterprises in India, reinforcing its position as one of the leading
MSME-focused lenders in the country.
Amitabh Chaudhry, MD & CEO, Axis
Bank, said, “Over
the years, Axis Finance has built a high-quality lending franchise anchored in
strong governance and disciplined risk management. This capital infusion
underscores our long-term commitment to strengthening Axis Finance as an
integral part of Axis Group. It positions the company to pursue sustainable
growth with prudence, while building a leading, diversified non-bank lending
franchise in India. We are delighted to welcome Kedaara Capital, as an investor,
as Axis Finance enters its next phase of growth.”
Sai
Giridhar, MD & CEO, Axis Finance, said,
“This significant boost to our capital base gives us the firepower to
accelerate growth in a targeted and prudent way. Over the years, we have built
Axis Finance on the pillars of rigorous risk management practices, and
long-term client relationship. As India’s credit markets continue to deepen, the
company’s well capitalised position will be pivotal in serving specialised
credit needs of our customer segments responsibly. With Axis Bank’s continued,
unwavering support and Kedaara Capital joining us as an investor, we are now
even better positioned to build greater scale, invest further in people and
technology, and continue delivering high-quality solutions to our customers.
Sunish Sharma, Founder and Managing Partner at Kedaara
Capital,
commented:
Axis
Finance has consistently demonstrated excellence in execution, underpinned by
robust governance and disciplined risk management—cornerstones of a
high-quality lending institution. The company’s scaled and diversified presence
across retail, MSME, and wholesale lending uniquely positions it to capitalize
on the significant structural growth opportunities emerging in India’s credit
market. We are excited to partner with the Axis Finance team and look forward
to supporting the company as it embarks on its next phase of growth and value
creation.”
Transaction
Advisors to AFL for the preferential issuance
Financial
Advisors: Morgan Stanley and Axis Capital
Legal: Cyril
Amarchand Mangaldas
Transaction
Advisors to Kedaara Capital for the preferential issuance
Legal: Veritas
Legal