MUMBAI: The Centre is seeking to raise around Rs 5,316 crore by selling its 3% stake, owned through the Specified Undertaking of the Unit Trust of India (SUUTI), in private sector lender Axis Bank. The stake sale is aimed at helping North Block meet its budgeted disinvestment target.
The offer for sale, at Rs 689.52 apiece, translates into a 3% discount to Monday’s Axis Bank closing price of 710.35. The sale opens on February 12 for institutional investors.
Bidding by retail buyers and funds that choose to extend bids not allotted yet will be held on February 13, the bank said in a stock exchange filing late Monday.
About 10% of the offer size will be reserved for retail investors.
Citigroup Global Markets India, Morgan Stanley and ICICI Securities are managing the share sale.
The stake sale is part of the central government’s effort to meet its disinvestment target of Rs 80,000 crore. SUUTI owns around 9.63% in Axis Bank, 7.97% in ITC and 1.80% in L&T.