Home / Companies / News /  Bid to sell SUUTI stake in Axis off to a good start

The Centre’s bid to sell a majority part of its residual stake in Axis Bank got off to a good start with the issue opening for non-retail investors on Wednesday and being over-subscribed four times the base size.

“Offer for Sale of SUUTI shares in Axis Bank got good response on day one. Issue subscribed over 4 times of base size at a clearing price above the floor price by non-retail investors. SUUTI has decided to exercise the green shoe option. Retail investors get chance to bid tomorrow," disinvestment secretary Tuhin Kanta Pandey tweeted.

The government may get close to 4,000 crore by selling up to 58 million equity shares or 1.95% stake held in Axis Bank through the Specified Undertaking of the Unit Trust of India (SUUTI) at an floor price of 680.

The central government had sold nearly 10 million shares of Axis Bank worth around 600 crore last year held through SUUTI, taking advantage of the buoyant equity market.

SUUTI held a 3.45% stake in the bank as of 31 March, according to exchange filings. After the latest sale, its shareholding in the lender is likely to come down to 1.5%.

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.

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