The centre as part of its disinvestment programme will sell a portion of its stake in Axis Bank held via SUUTI to mop up close to Rs. 5316 crore. For the current fiscal year, the government targets Rs. 80,000 crore through its various divestment initiatives.
"The Specified Undertaking of the United Trust of India (seller) proposes to sell up to 50,759,949 (1.98 per cent) equity shares of Axis Bank (base offer size) on February 12, 2019," Axis Bank said. The offer for sale (OFS) of up to 3% is for two days and starts on February 12. The floor price for the offer has been fixed at Rs 689.52 per share.
On Monday, the stock of Axis Bank closed at Rs. 710.35 per share on the BSE.
As per the filing, the government would also have the option to sell an additional 26,337,187 shares or 1.02 per cent stake in case of over subscription.
Through the offer, shares held by SUUTI, which is the promoter company of Axis Bank will be offloaded. The OFS remains opens for non retail investors on Tuesday and on February 13, 2019, retail investor can participate in the offer.