The offer for sale will open on 19 May for non-retail investors and on 20 May for retail investors with an option to additionally sell 2.2 crore equity shares
The government is selling up to 58 million equity shares held in Axis Bank through the Specified Undertaking of the Unit Trust of India (SUUTI) at a floor price of ₹680, potentially fetching it close to ₹4,000 crore.
The offer for sale will open on 19 May for non-retail investors and on 20 May for retail investors with an option to additionally sell 22 million equity shares, the bank said in a regulatory filing on Tuesday.
While the SUUTI is committed to selling up to 36 million equity shares representing 1.21% of the paid up equity share capital, it has the option of selling another 22 million shares representing 0.74% of paid up equity share capital in case of oversubscription.
“In the event that the Oversubscription Option is exercised, the Equity Shares forming part of the Base Offer Size and the Oversubscription Option will represent 1.95% of outstanding Equity Shares (58 million) of the Company as on March 31, 2021," it added.
The Union government 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 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 most 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, was confident that the ₹1.75 trillion target is still achievable.
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