The Specified Undertaking of the United Trust of India (SUUTI) plans to sell 5.08 crore shares representing 1.98% of Axis Bank at ₹689.52 per share. The sale also includes an oversubscription portion of 2.63 crore shares representing an additional 1.02% stake in the private lender.
While the total offer size would be in excess of ₹5,300 crore, the floor price represents a discount of nearly 3% to Monday’s closing price of ₹710.35.
“The Specified Undertaking of the United Trust of India proposes to sell up to 50,759,949 equity shares of Axis Bank on February 12 for non-retail investors only and on February 13 for retail Investors and non-retail investors, who choose to carry forward their un-allotted bids with an option to additionally sell 26,337,187 equity shares of the company,” said a regulatory filing by Axis Bank.
As per the latest shareholding information of the company, SUUTI held a total of 23.87 crore equity shares representing 9.56% as on December 31, 2018.
Meanwhile, the sale will take place on a separate window of the bourses on February 12 and February 13, 2019 from 9. 15 a.m. to 3.30 p.m. Further, 10% of the offer for sale has been reserved for retail investors. In January, Finance Ministry officials had said that the Centre might consider selling part of its stakes in Axis Bank, L&T and ITC that were held via SUUTI.
As on December 31, SUUTI held nearly 8% in ITC and 1.80% in Larsen & Toubro.
