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Home / Economy / Govt raises 3,994 cr by selling stake in Axis Bank

Govt raises 3,994 cr by selling stake in Axis Bank

SUUTI held a 3.45% stake in Axis 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% (Bloomberg)Premium
SUUTI held a 3.45% stake in Axis 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% (Bloomberg)

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

The central government has garnered 3,994 crore from its stake sale in Axis Bank after the offer for sale ended for both retail and non-retail investors, a finance ministry official said under condition of anonymity.

The finance ministry last week sold 58 million shares or 1.95% stake held in Axis Bank through the Specified Undertaking of the Unit Trust of India (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 central government had sold nearly one crore 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.

SUUTI has minority stakes in several listed and unlisted companies, with most of its value locked in hotels-to-personal care conglomerate ITC Ltd (7.93%), and construction engineering company Larsen & Toubro Ltd (1.8%). It had earlier sold off all of its stake in L&T.

The government’s ambitious disinvestment schedule for FY22 may get delayed because of the second wave of the covid-19 pandemic, disinvestment secretary Tuhin Kanta Pandey said at Mint India Investment Summit 2021 last month. Pandey, however, exuded confidence that the 1.75 trillion target is still achievable. With revenues expected to shrink for the second consecutive year in FY22, achieving the disinvestment target will be crucial for the finance ministry.

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