10 Nov , 2022 By : Monika Singh
The government is all set to shed the Specified Undertaking of the Unit Trust of India (SUUTI)’s entire 1.55% stake in private sector lender Axis Bank through an offer for sale (OFS) on November 10 and 11, according to a notice to the stock exchanges.
With this stake sale, the government will no longer hold any stake in the private sector lender through SUUTI. However, public sector behemoth LIC still has an 8.14% stake in Axis Bank.
The shares will be priced at Rs 830.63 apiece, which brings the total value of the sale to nearly Rs 4,000 crore.
The offer will be open to non-retail investors on November 10. On November 11, it will be open to retail investors, and for non-retail investors who opt to carry forward their bid. Ten per cent (10%) of the issue will be reserved for retail investors. They will have the option to bid at a price above the floor price or the cut-off price, where the latter is the lowest price at which the OFS were sold in the non-retail category, based on all bids on T-day.
The latest development is unlikely to have any sharp impact on the private bank’s share price, as SUUTI has been shedding its stake in the bank at regular intervals, say analysts.
In May 2021, the government sold around 1.95% stake in the bank through an OFS. Two years back, it sold around 3% stake through an offer for sale. Overall, since the end of March in 2016, SUUTI has sold around 12% in the private sector bank.
On Wednesday, shares of Axis Bank closed 0.2% higher at Rs 874.35 on the BSE.