The central government’s sale of shares, held through SUUTI in Axis Bank, got subscribed over four times on the first day of offer on Wednesday, according to DIPAM Secretary Tuhin Kanta Pandey.
Offer for sale of SUUTI shares in the lender sees four-fold subscription on the debut day
The central government’s sale of shares, held through SUUTI in Axis Bank, got subscribed over four times on the first day of offer on Wednesday, according to DIPAM Secretary Tuhin Kanta Pandey.
The government is selling up to 5.80 crore shares or 1.95 per cent stake held through the Specified Undertaking of the Unit Trust of India (SUUTI) in Axis Bank at a floor price of Rs 680 apiece. This includes a base issue size of 3.60 crore shares and a greenshoe option to sell more than 2.20 crore shares.
“Offer for Sale of SUUTI shares in Axis Bank got a good response on day one. Issue subscribed over four times of base size at a clearing price above the floor price by non-retail investors. SUUTI has decided to exercise the greenshoe option. Retail investors get a chance to bid tomorrow,” the Department of Investment and Public Asset Management (DIPAM) secretary said in a tweet.
The sale of 1.95 per cent stake is expected to fetch around Rs 4,000 crore to the exchequer. SUUTI held 3.45 per cent stake in Axis Bank at the end of March 2021.
Shares of Axis Bank closed at Rs 716.70, up 0.67 per cent over previous close on the BSE on Wednesday.