Axis Bank Declines 3% as Non-Retail Investors Start Bidding for Govt Stake; Know Details

Axis Bank stocks traded lower on Thursday, November 10, as Street sentiment turned negative on the back of stake sell by the government and weak trend in domestic market. At 11 am, the stock was quoting at Rs 848.10 apiece on the National Stock Exchange, down by 2.93 per cent. At the same time, non-retail category of the OFS had seen subscription of 4 per cent.

The Specified Undertaking of the Unit Trust of India (SUUTI), under the union government, has offloaded 4,65,34,903 shares, representing 1.55 per cent stake in the private lender. With this sell, the government has now completely exited the lender.

On November 9, Axis Bank informed exchanges that the government, through the Specified Undertaking of the Unit Trust of India or SUUTI, would sell 4.65 crore shares at a floor price of Rs 830.63.

“On November 10, 2022, the OFS is for non-retail investors only and on November 11, 2022 for retail investors and for non-retail investors, including who choose to carry forward their un-allocated bids,” according to the filing.

ICICI Securities, Citigroup Global Markets India and Morgan Stanley India are acting as brokers on behalf of the seller, it added. From this sale, the government expects to garner Rs 4,000 crore and completely exit its stake in Axis Bank.

As of September 2022, the SUUTI held 4,65,34,903 shares representing 1.55 per cent stake in the bank. The government, at the current market price, is expected to realise about Rs 4,000 crore from the share sale. Shares of Axis Bank on Wednesday closed at Rs 874.35, up 0.17 per cent over the previous close on the BSE.

Shares held in dematerialized form in one or more Demat accounts with the relevant depository participant will be offered for sale on November 10, 2022, (‘T day’) for non-retail investors only and on November 11 (T+1 day) for retail and non-retail investors, Axis Bank said in the regulatory filing.

In May last year, the government sold of 1.95 per cent stake in Axis Bank held through SUUTI for a consideration of about Rs 4,000 crore.

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