Govt raises over Rs 5,550 cr from Axis Bank stake sale

The government today raised over Rs 5,550 crore by selling 9 per cent of its stake in Axis Bank held through SUUTI, close to double of its Rs 3,000 crore budget target from residual share sale in private sector firms this fiscal.
As per the bulk deal data on the stock exchanges, 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 yesterday's closing price.
The share sale fetches Rs 5,557 crore to the exchequer.
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. Other major buyers of the shares include Citigroup Global Markets Mauritius and Goldman Sachs Singapore.

Shares of Axis Bank closed Rs 36.55, or 2.7 per cent, higher at Rs 1,393.40. The scrip had dipped over 3 per cent in the morning trade to a low of Rs 1,313.25.
The merchant bankers had yesterday initiated the process of stake sale and had fixed a price band of Rs 1,290-1,357 a piece for the deal.

"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 CMD Kishore P Ostwal said.
Specified Undertaking of UTI (SUUTI), formed in 2003 is an offshoot of erstwhile UTI, held 20.72 per cent in Axis Bank. Pursuant to the deal, SUUTI's holding will come down to 11.72 per cent.

SUUTI in January had appointed three merchant bankers -- J P Morgan, Citigroup Global Markets and JM Financial -- for sale of its stake in Axis Bank.
Sources said there will be a six month lock-in period following the share sale.
The other promoters of the bank are Life Insurance Corporation, General Insurance Corporation, New India Assurance and National Insurance Company.