Govt gets Rs 3,839 cr from sale of Axis Bank shares through SUUTI

The floor price for the offer was Rs 830.63 per equity share. With the sale of the SUUTI stake, the disinvestment proceeds mopped up so far this fiscal increased to Rs 28,383 crore.

FPJ Web Desk PTIUpdated: Wednesday, November 16, 2022, 08:02 PM IST
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Govt gets Rs 3,839 cr from sale of Axis Bank shares through SUUTI | Representative Image/ File

The government has garnered about Rs 3,839 crore by selling a 1.5 per cent stake in Axis Bank, held through SUUTI.

Last week the government sold a 1.5 per cent stake in Axis Bank through the Specified Undertaking of the Unit Trust of India (SUUTI).

The floor price for the offer was Rs 830.63 per equity share.

"The government has received about Rs 3,839 crore from the sale of Axis Bank shares held by SUUTI," the Department of Investment and Public Asset Management Secretary Tuhin Kanta Pandey tweeted.

With the sale of the SUUTI stake, the disinvestment proceeds mopped up so far this fiscal increased to Rs 28,383 crore. The budget target from disinvestment in the current fiscal (Apr-March) is pegged at Rs 65,000 crore.

When did the sales begin?

On November 10, only non-retail investors were allowed to place their bids and the retail investors submited their bids on November 11.

25 per cent of the offer for sale will be allocated to the mutual funds that are registered with SEBI and insurance companies under IRDA.

ICICI Securities, Morgan Stanley and Citigroup Global Markets India were acting as brokers on behalf of the seller.

A week earlier, even the US-based private equity major Bain Capital offloaded shares worth Rs 1,487 through open market transaction.

Shares of Axis Bank closed at Rs 854.65, down 0.44 per cent against the previous close on the BSE.

Axis Bank Quarter Earning

In the second quarter ending September for this fiscal year, Axis Bank has recorded a strong performance with its net profit jumping to Rs 5,330 crores up by 70 percent. The company's net interest income went up by 31 per cent year-on-year to Rs 10,360.3 crore and the net interest margin had come in at 3.96 per cent.

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