Govt raises Rs 4,000 cr by SUUTI stake sale in Axis Financial institution

On Day 2, the retail portion of the Axis Financial institution OFS managed to garner simply 28.5% subscription.

Kick-starting disinvestment in FY22, the Centre raised round Rs 4,000 crore on Thursday by promoting 1.95% from the Specified Enterprise of the Unit Belief of India or SUUTI’s holding in Axis Financial institution. Previous to the OFS, SUUTI held 3.45% in Axis Financial institution.

SUUTI had proposed to promote as much as 3.6 crore fairness shares, representing 1.21% of paid-up fairness share capital of Axis Financial institution. It had additionally retained the choice to promote an extra 2.2 crore shares or 0.74% of fairness share capital. The ground value for Axis Financial institution OFS was set at Rs 680/share. The OFS was opened on Could 19 for non-retail and Could 20 for retail and non-retail.

“Situation subscribed over 4 occasions of base dimension at a clearing value above the ground value by non-retail buyers. SUUTI has determined to train the inexperienced shoe choice,” division of funding and public asset administration (DIPAM) secretary Tuhin Kanta Pandey had tweeted on Wednesday after Day 1 of OFS.

On Day 2, the retail portion of the Axis Financial institution OFS managed to garner simply 28.5% subscription. As towards 58.07 lakh shares reserved for retail buyers, bids had been acquired for less than 16.6 lakh shares, in response to information offered by the exchanges.

The unsubscribed portion of the OFS can be allotted to non-retail buyers. Clearing value of Rs 701.55 was mounted for each retail and non-retail bidding of Axis Financial institution shares. Shares of Axis Financial institution closed at Rs 705.9 on the BSE on Thursday, down 1.51% from the closing value of yesterday.

The beginning of the Centre’s bold Rs 1.75 lakh-crore disinvestment programme for FY22 has been delayed as a result of second wave of Covid-19.

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