The government has decided to sell the Specified Undertaking of the Unit Trust of India's (SUUTI) 1.55 per cent stake, or 4.65 crore shares in Axis Bank via an offer for sale (OFS). The shares will go on the block on November 10 and 11, at a floor price of Rs 830.63 per share, the bank said in a regulatory filing.
The entire divestment proceeding will be allocated to the government, which means the government is expecting to get approximately Rs 4,000 crore from shares sale. According to the shareholding data available on the Bombay Stock exchange, if SUUTI sells this 1.55 per cent stake then it will completely exit this via the OFS.
When will the sales begin?
On November 10 i.e. today, only non-retail investors will be allowed to place their bids and the retail investors can submit their bids on November 11. 25 per cent of the OFS will be allocated to the mutual funds that are registered with SEBI and insurance companies under IRDA.
ICICI Securities, Morgan Stanley and Citigroup Global Markets India will be acting as brokers on behalf of the seller.
A week earlier, even the US-based private equity major Bain Capital offloaded shares worth Rs 1,487 through open market transaction.
Axis Bank Quarter Earning
In the quarter ending September, Axis Bank has recorded a strong performance with its net profit rising to Rs 5,330 crores up by 70 percent. The company's net interest income jumped by 31 per cent on-year to Rs 10,360.3 crore and the net interest margin had come in at 3.96 per cent.
Axis Bank Shares in BSE on November 10
At the BSE the shares of the bank on November 9 closed at Rs 874.35 marginally higher by 0.17 per cent but today the market is already moving and Axis Bank shares have moved down by three per cent after opening at Rs 843.70 as non-retail investors are bidding for government stake. Axis Bank was around Rs 847.25 apiece at 12:45 pm.
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