Govt to sell 2% in Axis Bank for Rs 4,000cr

Mumbai: The government, through Specified Undertaking of the Unit Trust of India (SUUTI), is selling nearly 2% stake in Axis Bank, or up to 5.8 crore shares of the bank, to raise about Rs 4,000 crore. The minimum price for the offer for sale (OFS) is Rs 680 per share, a 4.4% discount to Tuesday’s closing price on the BSE.
Non-retail investors will be allowed to bid on May 19, and individuals on May 20, the bank told exchanges. A quarter of the offer is reserved for retail investors. According to the deal’s terms, the base size of the offer is 3.6 crore shares or about 1.2% of the bank’s equity for nearly Rs 2,450 crore. And there’s a green shoe option to the offer consisting of 2.2 crore shares or 0.74% of the equity for a little over Rs 1,500 crore. SUUTI became one of the promoters of Axis Bank (formerly UTI Bank) after the erstwhile Unit Trust of India (UTI) was bifurcated in 2000.As of March 2021, SUUTI had a 3.45% stake in the bank, BSE data showed.