Non-retail investors will be able to bid on May 19 and retail investors on May 20.
The government has decided to sell 2 per cent stake in private sector bank Axis Bank. The government will sell 5.8 crore shares of this bank. Through this, she will collect around 4000 crores. Under the offer for sale, it will be sold for 680 rupees per share, which is a 4.4 percent discount on Tuesday’s closing price. On Tuesday, it had closed at the level of Rs 711.
Non-retail investors will be able to bid on May 19 and retail investors on May 20. The bank has given this information to the exchange. A quarter of 5.8 crore shares have been reserved for retail investors. According to the deal, the base size of this offer is 3.6 crores, which is worth 2450 crores. This is 1.2 percent of the bank’s total share. The promoter holds 51.43 per cent stake in this bank. LIC holds 8.19 per cent stake. Axis Bank was earlier UTI Bank and had its bifurcation in 2000.
The government will sell its stake in Axis Bank through the Specific Undertaking of Unit Trust of India (SUUTI). SUUTI will sell 3.6 crore shares of the bank in this deal. It holds 1.21 per cent stake in the bank. On over subscription, 22 million additional shares will be sold, which is 0.74 per cent stake. Last year, the government sold 10 million shares in Axis Bank for 600 crores. This deal was also completed through SUUTI. As of March 31, SUUTI’s stake in the bank is 3.45 per cent. After this deal, its stake will come down to 1.5 per cent.
