New Delhi : The government is considering diluting its 11.7 % stake in Axis Bank it holds through the Specified Undertaking of the Unit Trust of India to meet shortfall in disinvestment proceeds and revenue collection during the current fiscal.
“There are various options being considered, including seeking a higher dividend from cash-rich central public sector enterprises (CPSEs) and dilution of stake in Axis Bank,” sources told PTI. “All these are on the table as the fiscal deficit target of 3.9 % of GDP for the current fiscal is sacrosanct,” they added.
However, sources said no final decision has been taken so far on any of the options yet. At current market price, the government could raise about Rs 11,240 crore by selling 27.48 crore shares. Axis Bank stock closed at Rs 409.35, down 4.98 %. SUUTI currently holds 11.7 % stake in Axis Bank after selling off 9 % stake in the lender in March 2014, which helped mobilise Rs 5,500 crore.
