The stake sale of Axis Bank which was held by government through the Specified Undertaking of the United Trust of India, witnessed a blockbuster start as the institutional investors oversubscribed 2.56 times the number of shares reserved for them, accumulating bids worth over Rs 8,000 crores during the first day of the offer for sale.
According to data from the National Stock Exchange the institutional investors bid 2.56 times the 4.56 crore shares reserved for the offer taking the total to 11.69 crore shares. The floor price set for the share sale is fixed at Rs 689.52 a share, enabling the investors bid worth Rs 8,062 crores.
The government is selling up to 5.07 crore shares in Axis Bank through SUUTI by the two-day OFS. It also has a green-shoe option to retain over-subscription of 2.63 crore shares in case of over subscription. The issue for retail investors has opened today.
With the current situation of over-subscription, the government would sell 3 percent stake in Axis Bank after the sales goes through. As on December 30, 2018, SUUTI owned 9.56 percent in Axis Bank.