The government is selling 3.5 crore shares or 1.21% stake in the company as a base offer with a greenshoe option of 2.21 crore shares at a floor price of Rs 680 per share. Shares of Axis Bank gained marginally on Tuesday to close at Rs 711.90 on BSE.
SUUTI which held a 9.56% stake in Axis Bank as of December 31, 2018 sold consistently to reduce it to 3.45% as of March 31, 2021. SUUTI sold 61.43 lakh shares of Axis Bank between 2 and 4 December last year, which fetched the government Rs 374.21 crore. Between 26 November and 27 November, it had sold 36.25 lakh shares for a consideration of Rs 221.47 crore. The stock has rallied 18% since 1 December compared to a 15% jump in the Nifty index.
The government has set a target of Rs 1.75 lakh crore for disinvestments and strategic sales for FY2021-22. The government is planning a mega initial public offer of Life Insurance Corporation. It has also announced the sale of an oil marketing company Bharat Petroleum Corporation.
Earlier this month, the Cabinet Committee on Economic Affairs gave its in-principle approval for strategic divestment and transfer of management control in IDBI Bank. Besides IDBI Bank, the government would privatize two public sector banks during FY22.
