BackGovt to sell 9% stake in Axis Bank through block deals
Govt will be offloading 42.2 million shares of Axis Bank held by its trust fund SUUTI
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Mumbai: The government will sell 9% stake in Axis Bank Ltd on Friday via block deals, according to a banker directly involved in the transaction and a copy of the term sheet reviewed by Mint.
On Thursday morning, economic affairs secretary Arvind Mayaram also said that the government is looking to sell its stake in Axis Bank on Friday through block trades on exchanges, moneycontrol.com said in a report on its website.
As of 31 December 2013, the government held 20.72% shares in Axis Bank.
According to the term sheet, the government will be offloading about 42.2 million shares of Axis Bank that are held by its trust fund, Specified Undertaking of the Unit Trust of India (SUUTI), representing 9% of the bank’s shares.
The shares will be sold to institutional investors at a price of ₹ 1,290 to ₹ 1,357.35 per share, which works out to a discount of 0-5%, according to the term sheet.
The overall deal size is estimated to be between ₹ 5,451 crore to ₹ 5,736 crore and the sale is likely to be completed by Friday morning.
On Thursday, shares in Axis Bank closed at ₹ 1,356.85 per share on the BSE, down by 2.11% over the previous close, while the Sensex closed at 21740.09, down 0.42%.
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