Home / Markets / Stock Markets /  Centre to sell SUUTI's 1.55% stake in Axis Bank via OFS

The Specified Undertaking of the Unit Trust of India (SUUTI), under the Central Government, will sell up to 1.55% stake or 4.65 crore shares in Axis Bank via an offer for sale (OFS). Around 4.65 crore shares of Axis Bank will go on the block on 10 and 11 November, at a floor price of 830.63 per share, the bank informed in a regulatory filing.

The government, at the current market price, is expected to realise about 4,000 crore from the share sale.

The offer will be concluded over Thursday and Friday, with non-retail investors bidding on the first day and retail investors on the second day, as per a regulatory filing.

"The offer shall take place on a separate window of the Stock Exchanges on November 10, 2022 (T day) and November 11,2022 (T+1 day) from 9:15 am to 3:30 am on both days," Axis Bank said in its filing.

Only non-retail investors will be allowed to place their bids on T day, i.e. on the first day of the offer on 10 November. Retail investors can bid on T+1 day, i.e. on 11 November and non-retail investors who have chosen to carry forward their unallocated bids to T+1 day.

Only mutual funds that are registered with SEBI and insurance companies under IRDAI shall be allocated more than 25% of the OFS.

Based on shareholding data available on the Bombay Stock Exchange, SUUTI held a 1.55% stake in the bank, suggesting it will completely exit this via the OFS.

The shareholding was transferred to the investment vehicle in 2003 when a scheme of the Unit Trust of India failed and was bailed out.

At the time, the fund held investments in more than 40 companies. It has slowly been exiting these since then.

Last week, US-based private equity major Bain Capital offloaded a 0.54% in Axis Bank for 1,487 crore through open market transaction.

Axis Bank reported a rise of 70% in its net profit to 5,330 crore. The lender's net interest income went up by 31% YoY to 10,360.3 crore

ICICI Securities, Citigroup Global Markets India and Morgan Stanley India will be acting as brokers on behalf of the seller.

Axis Bank shares closed on Wednesday at 874.35 per share, up 0.17% over the previous close on the BSE. The development came after market close.

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