Axis Bank rose as much as 3.7 percent to its highest intraday level in more than two years on Tuesday as dealers cited good demand for a share sale of up to $1 billion.

The private sector lender on Monday was planning to raise as much as $1 billion through a qualified institutional placement, sources with direct knowledge of the matter told Reuters.

Axis Bank shares were up 3.3 percent at 9:31 a.m. after earlier gaining to as much as 1,465.35 rupees, its highest level since November 18, 2010.