 "SUUTI appoints bankers for Axis Bank stake sale")
Specified Undertaking of Unit Trust of India (SUUTI) on Tuesday appointed three merchant bankers to facilitate sale of its 23.58 per cent stake in Axis Bank valued over Rs 13,000 crore. These are: JPMorgan, Citigroup Global Markets and JM Financial.
SUUTI had specified the requirement of two foreign banks and a domestic merchant bank for the deal.
SUUTI was formed in 2003 as an offshoot of erstwhile UTI that holds a minority stake in Axis Bank, ITC and L&T. The Axis Bank stake sale will help the government meet its target of raising Rs 14,000 crore. The government also has plans to sell its stake in other companies in which it doesn’t hold a majority stake.
The merchant bankers will sell the government’s stake in the bank through block trades on exchanges. Life Insurance Corporation, General Insurance Corporation and New India Assurance and National Insurance Company are the other promoters of Axis Bank.
The bank had market capitalisation of Rs 55,799 crore. The government plans to offload its holding in ITC and L&T later as per the market condition.
In March 2012, the government cleared the proposal to wind up SUUTI and create National Asset Management Company (NAMC).
The company was in turn expected to take loan from banks leveraging its assets to buy government stakes in public sector companies. But, earlier this month, the government decided not to wind up SUUTI for the time being and sell the stake in the companies.
SUUTI had specified the requirement of two foreign banks and a domestic merchant bank for the deal.
SUUTI was formed in 2003 as an offshoot of erstwhile UTI that holds a minority stake in Axis Bank, ITC and L&T. The Axis Bank stake sale will help the government meet its target of raising Rs 14,000 crore. The government also has plans to sell its stake in other companies in which it doesn’t hold a majority stake.
The merchant bankers will sell the government’s stake in the bank through block trades on exchanges. Life Insurance Corporation, General Insurance Corporation and New India Assurance and National Insurance Company are the other promoters of Axis Bank.
The bank had market capitalisation of Rs 55,799 crore. The government plans to offload its holding in ITC and L&T later as per the market condition.
In March 2012, the government cleared the proposal to wind up SUUTI and create National Asset Management Company (NAMC).
The company was in turn expected to take loan from banks leveraging its assets to buy government stakes in public sector companies. But, earlier this month, the government decided not to wind up SUUTI for the time being and sell the stake in the companies.
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