PremiumThe union government will sell up to 1.55% of the total issued and paid-up equity share capital of the private lender through the Specified Undertaking of the Unit Trust of India
MUMBAI : The union government, through the Specified Undertaking of the Unit Trust of India (SUUTI), a promoter of Axis Bank, will sell up to 1.55% of the total issued and paid-up equity share capital of the private lender on 10 and 11 November, the bank said in a regulatory filing on Wednesday.
“The Specified Undertaking of the Unit Trust of India proposes to sell up to 4,65,34,903 equity shares of Axis Bank Ltd….on 10 November for non-retail investors and on 11 November for retail investors and non-retail investors, including who choose to carry forward their un-allocated bids…in accordance with the offer for sale guidelines…" the statement said.
As of 30 September, SUUTI’s stake in the bank stood at 1.55%. The offer, Axis Bank said, shall take place on a separate window of the stock exchanges from 9:15 am to 3:30 pm on both days. It said that only non-retail investors shall be allowed to place their bids on 10 November.
“While placing their bids, non-retail Investors may indicate their willingness to carry forward their un-allocated bids to T+1 day (11 November) for allocation to them in the unsubscribed portion of retail category," it said.
The floor price for the offer shall be ₹830.63 per equity share, while Axis Bank’s shares on the BSE closed at ₹874.35 apiece on Wednesday.
In May 2021, Mint had reported that the government garnered ₹3,994 crore from its stake sale in Axis Bank after the offer for sale ended for both retail and non-retail investors. The finance ministry had sold 58 million shares or 1.95% stake held in Axis Bank through SUUTI to non-retail and retail investors with the offer for sale for the non-retail investors getting over-subscribed four times of base size.
The Parliament bifurcated UTI in 2002 after the company’s US-64 investment plan ran into trouble, creating SUUTI and UTI Asset Management Co. Pvt. Ltd. The former holds the assured-return investment plans of UTI and the latter oversees the market-linked plans.