SUUTI Plans To Sell 3% In Axis Bank For ₹5,300 Crore

The government could rake in at least ₹5,300 crore as the Specified Undertaking of the Unit Trust of India (SUUTI) plans to sell up to 3 per cent stake in Axis Bank via an offer-for-sale (OFS). The floor price for the offer has been set at ₹ 689.52 per equity share of the bank.

Currently, SUUTI, which was formed on February 1, 2003, by restructuring the erstwhile Unit Trust of India into UTI Trustee Company Pvt Ltd and SUUTI, holds 9.56 per cent stake in the private sector bank. According to the offer document, SUUTI proposes to sell up to 5.07 crore (1.98 per cent) equity shares of ₹2 face value each of Axis Bank on February 12 (for non-retail investors only) and on February 13 (for retail investors and non-retail investors, who choose to carry forward their un-allotted bids) with an option to additionally sell 2.63 crore (1.02 per cent) equity shares (the oversubscription option).

The allocation to non-retail investors will be at a price equal to the cut-off price or higher as per the bids.

Retail investors can enter a price bid or opt for bidding at the cut-off price.

Ten per cent of the offer size has been reserved for retail investors. A minimum of 25 per cent of the offer shares will be reserved for mutual funds and insurance companies.

ICICI Securities, Morgan Stanley India and Citi Group Global Markets are the brokers on behalf of the seller.

Axis Bank shares closed at ₹710.35 apiece, down 1.10 per cent over the previous close on the BSE.