Axis Bank's Rs 4,000-crore OFS subscribed over 2x by non-retail segment

Most bids came in at Rs 701.6 as against floor price of Rs 680 per share; 5.8 mn shares to be auctioned to retailers on Thursday

The Rs 4,000-crore share sale in private sector lender Axis Bank on Wednesday was subscribed more than two times. The 52.27-million-share offer for sale (OFS) saw bids for nearly 135 million shares from non-retail investors, data provided by stock exchanges showed. Most bids came in at Rs 701.6 as against floor price of Rs 680 per share. Shares of Axis Bank closed at Rs 714 on the NSE.

About 5.8 million shares reserved for retail investors will be auctioned on Thursday.

Following the OFS the government’s stake in Axis Bank—held by the Specified Undertaking of the Unit Trust of India (SUUTI)—will drop from 3.45 per cent to 1.5 per cent. In December 2020, the centre had offloaded a 0.88 per cent stake in Axis Bank.

The amount raised through the share sale will go towards the government’s 2021-22 disinvestment kitty. The centre has set the disinvestment target for the current fiscal at Rs 1.75 trillion.

Shares of Axis Bank have gained 15.5 per cent this year.