The Specified Undertaking of the United Trust of India (SUUTI), owned by the government, has proposed to sell up to 3 per cent equity stake in Axis Bank, fetching the government over Rs 5,300 crore.
The offer for sale of up to 3 per cent would be for two days from February 12 and is part of the government’s disinvestment programme through which it aims to raise Rs 80,000 crore in the current fiscal. “SUUTI proposes to sell up to 50,759,949 (1.98 per cent) equity shares of Axis Bank (base offer size) on February 12, 2019,” Axis Bank said in a stock exchange filing. The floor price for the offer has been fixed at Rs 689.52 per share. It is lower than the Monday closing price of Rs 710.35 per share on the BSE.
Shares held by SUUTI, a promoter entity of Axis Bank, would be offloaded through the sale. The sale would be open for non-retail investors on Tuesday and retail investors can put in their bids on Wednesday. As per the filing, the government would also have the option to sell an additional 26,337,187 shares or 1.02 per cent stake in case of over subscription.
SUUTI, which was created to take over part of the assets and liabilities of the now defunct Unit Trust of India (UTI), owned 9.56 per cent stake in Axis Bank at the end of December 2018. In the event, the oversubscription option is exercised, the equity shares forming part of the base offer size and the oversubscription option will, collectively, be referred to as “offer shares”. In case the oversubscription option is not exercised, the equity shares forming part of the base offer size will be referred to as “offer shares”.