Brochures are seen at a branch of Axis Bank in Mumbai, (Reuters)
Brochures are seen at a branch of Axis Bank in Mumbai, (Reuters)

Institutional investors put in 8,000 crore bids for SUUTI stake in Axis Bank

  • The issue will open for retail investors on Wednesday
  • Shares of Axis Bank closed at 705.85 apiece, down 0.63%, on the BSE.

NEW DELHI: The government's share sale in Axis Bank held through SUUTI witnessed a blockbuster start with institutional investors putting in bids worth over 8,000 crore by lapping up 2.56 times the shares reserved for them on the first day of the offer for sale (OFS).

Institutional investors bid for over 11.69 crore shares, 2.56 times the 4.56 crore shares on offer for them, according to data from the National Stock Exchange.

The issue will open for retail investors on Wednesday.

At the floor price of 689.52 a share fixed for the share sale, the bids by these investors are worth 8,062 crore.

The government through the Specified Undertaking of the United Trust of India (SUUTI) is selling up to 5.07 crore shares in Axis Bank through the two-day OFS. It also has a green-shoe option to retain over-subscription of 2.63 crore shares in case of over subscription.

If the share sale goes through with over-subscription, the government would sell 3 per cent stake in Axis Bank held through SUUTI. As on December 30, 2018, SUUTI held 9.56 per cent in Axis Bank.

The proceeds from the stake sale would help the government move towards the 80,000-crore disinvestment target set for the current financial year. So far this fiscal, it has raised about 36,000 crore by selling minority stake in CPSEs and exchange-traded fund (ETF) offering.

Shares of Axis Bank closed at 705.85 apiece, down 0.63%, on the BSE.

This story has been published from a wire agency feed without modifications to the text.

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