The Central government through it’s under control Specified Undertaking of the Unit Trust of India (SUUTI) is planning to raise around Rs 5,316 crores by selling its 3% stake in Axis Bank. The purpose of stake sale in the private sector lender is to meet the budgeted disinvestment target.
According to the Axis Bank exchange filing, the SUUTI purposed to sell 50,759,949 equity shares or 1.98 per cent equity with a face value of Rs 2 at the offer price at Rs 689.52 apiece, translates into a 3% discount as against the shares’ closing price of Rs. 710.3 on Monday.
The bank also said that an additional 26,337,187 shares or 1.02 per cent of the equity are kept aside for sale, in the case of oversubscription. According to the bank statement, the bidding for the stake sale for institutional investors will begin from February 12 (today), whereas the retail investors can take part in the bidding on February 13.
Axis Bank also stated that about 10% of the offer size will be reserved for retail buyers. It is reported that the stake sale by the government is part of its Rs 80,000 crores budgeted disinvestment target. SUUTI which currently owns around 9.63% in Axis Bank, also controls 1.80% stake in L&T and 7.97% in ITC.