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.
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.