Institutional investors put in Rs 8,000-cr bids for SUUTI stake in Axis Bank

The government's share sale in Axis Bank held through SUUTI witnessed a blockbuster start with institutional investors putting in bids worth over Rs 8,000 crore by lapping up 2.56 times the shares reserved for them on the first day of the offer for sale (OFS).

Institutional investors bid for over 11.69 crore shares, 2.56 times the 4.56 crore shares on offer for them, according to data from the National Stock Exchange.

The issue will open for retail investors on Wednesday.

At the floor price of Rs 689.52 a share fixed for the share sale, the bids by these investors are worth Rs 8,062 crore.

The government through the Specified Undertaking of the United Trust of India (SUUTI) is selling up to 5.07 crore shares in Axis Bank through the two-day OFS. It also has a green-shoe option to retain over-subscription of 2.63 crore shares in case of over subscription.

If the share sale goes through with over-subscription, the government would sell 3 per cent stake in Axis Bank held through SUUTI. As on December 30, 2018, SUUTI held 9.56 per cent in Axis Bank.

The proceeds from the stake sale would help the government move towards the Rs 80,000-crore disinvestment target set for the current financial year. So far this fiscal, it has raised about Rs 36,000 crore by selling minority stake in CPSEs and exchange-traded fund (ETF) offering.

Shares of Axis Bank closed at Rs 705.85 apiece, down 0.63 per cent, on the BSE.