The Central Government’s Specified Undertaking of the Unit Trust of India (SUUTI) will sell up to 1.55 per cent of Axis Bank’s shares, or 4.65 crore shares, through an Offer For Sale (OFS). Axis Bank’s shares will be auctioned off on November 10 and 11, with a floor price of $830.63 per share, according to a regulatory filing.
At the present market pricing, the government is expecting to earn almost 4,000 crore from the share sale.
According to a regulatory filing, the offer would be finished on Thursday and Friday, with non-retail investors bidding on the first day and retail investors competing on the second.
“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 permitted to put bids on T day, which is the first day of the offer on November 10th. Retail investors and non-retail investors who have opted to carry forward their unallocated bids to T+1 day can bid on T+1 day, which is November 11th.
Only mutual funds registered with SEBI and insurance companies registered with IRDAI will be given more than 25 per cent of the OFS.
According to shareholding statistics accessible on the Bombay Stock Exchange, SUUTI maintained a 1.55 per cent stake in the bank, implying that it will depart totally through the OFS.
When a Unit Trust of India plan failed and was bailed out in 2003, the shareholding was transferred to the investment vehicle.
The fund had investments in around 40 companies at the time. Since then, it has been gradually departing these.
Last week, the US-based private equity firm Bain Capital sold a 0.54 per cent stake in Axis Bank for Rs 1,487 crore in an open market deal.
Axis Bank recorded a 70 per cent increase in net profit to 5,330 crore. The lender’s net interest income increased by 31 per cent year on year to 10,360.3 crore.
On behalf of the seller, ICICI Securities, Citigroup Global Markets India, and Morgan Stanley India will act as brokers.