SEARCH

Axis Bank stake sale realises Rs.5,500 cr

Special Correspondent
print   ·   T  T  

LIC emerges as the largest investor

The Central Government on Friday sold its 9 per cent stake in Axis Bank, the third largest private sector bank in the country, through a block deal in a price range of Rs.1,313-1,341 per share.

This sale is expected to garner around Rs.5,500 crore with a sale of 4.20 crore shares held by the government through Specified Undertaking of UTI (SUUTI) in Axis Bank.

SUUTI, formed in 2003, is an offshoot of erstwhile UTI, held 20.72 per cent in Axis Bank. Following Friday’s deal, SUUTI’s holding will come down to 11.72 per cent in Axis Bank. Shares of Axis Bank closed 2.69 per cent higher at Rs.1,393.40 on the BSE.

However, shares of Axis Bank fell to the day’s low of Rs.1,313.25, down Rs.44 per share compared to its previous close in early trades. The investment bankers had fixed a price band of Rs.1,290-1,357 for the deal. JM Financial, JP Morgan and Citibank were handling the share sale.

LIC has emerged as the single largest investor, buying over 85 lakh shares at Rs.1,313.25, thereby pumping in over Rs.1,116 crore. New World Fund bought 26.88 lakh shares at Rs.1316.13 per share, Goldman Sachs 23.5 lakh shares at Rs.1,323.57 per share and City Group Global 38.2 lakh shares at Rs.1,316.13 per share. Several other institutional investors also bought shares in the block deal.

PTI reports:

About 4.2 crore Axis Bank shares were sold at an average price of Rs.1,315.13 apiece. This is at a 3.07 per cent discount to Thursday’s closing price. The share sale fetches Rs.5,557 crore to the Exchequer.

“The stock will bounce back on strong fundamentals of the bank. There was demand in the counter and now with the stake sale supply has come,” CNI Research Chairman and Managing Director Kishore P. Ostwal said.

Sources said there would be a six month lock-in period following the share sale.


O
P
E
N

close

Recent Article in BUSINESS

Voltech group to invest Rs.90 crore in two more joint ventures

City-based Voltech group, service provider in testing and commissioning of electrical plants, has floated two more joint ventures one in... »