SUUTI to sell up to 3% stake in Axis Bank via OFS
12 February 2019
The Specified Undertaking of Unit Trust of India (SUUTI) will sell up to 3 per cent stake in Axis Bank, through an offer for sale, to raise an expected Rs5,316 crore.
"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 floor price has been fixed at Rs689.52 per share, roughly a 3 per cent discount to the 11 February price of Rs710.35 per share, according to a stock exchange filing.
SUUTI will offer to sell 50,759,949 equity shares with a face value of Rs2 comprising 1.98 per cent equity in Axis Bank with an option to sell an additional 26,337,187 shares or 1.02 per cent of the bank’s equity in case of oversubscription.
The offer will open on 12 February for non-retail investors while bidding for retail quota and the unallotted non-retail quota will be on 13 February.
About 10 per cent of the offer size will be reserved for retail investors.
SUUTI, which was created to take over part of the assets and liabilities of the now defunct Unit Trust of India (UTI), owned 9.56 per cent stake in Axis Bank at the end of December 2018.
The government has raised Rs36,000 crore through stake sale in CPSEs as well as through tranches of Exchange Traded Funds (ETFs) and share buybacks in the first 10 months of the current fiscal.