Axis Bank shares fall from recent peak as government announces exit
The Specified Company of Unit Trust of India (SUUTI) is selling its 1.5% stake in Axis Bank. This is how the street reacted
In Thursday’s trade, shares of Axis Bank fell 3.5% to Rs 843 on BSE after closing at a high of 874.35 on Wednesday.
The government will sell the stake at Rs 830.63 per share, a 5% discount from Wednesday’s closing price, according to a regulatory filing. The total stands at around Rs 3,865 crore. With this sale, the government would exit the private sector lender altogether.
Bain Capital, which sold a 1.24% stake via a block deal on Nov. 1, still owns a 3% stake in Axis Bank. If the former wants to unload more participation, he can only do this after a cooling period of three months or 90 days. The floor price of Bain Capital’s block deal was Rs 888 per share.
In 2017, Bain Capital took a 4.8% stake in Axis Bank for Rs 6,854 crore.
As the sale of the government’s stake in Axis Bank begins on Thursday, non-retail investors can place their bids on the same day, while only retail investors will be allowed to bid for the shares on Friday.
ICICI Securities Limited, Citigroup Global Markets India Private Limited and Morgan Stanley India Company Private Limited are the stock brokers. ICICI Securities is acting as settlement broker, pursuant to the filing.
Meanwhile, amid buzz over the fate of SUUTI’s stake in ITC, the trust has made it clear that there are no plans to sell more stakes in the diversified conglomerate. As of September 2022, SUUTI held a 7.87% stake in ITC, which at the company’s current market price would be valued at Rs 34,140 crore.