Government to sell 1.95% stake in Axis Bank to raise Rs 4,000 cr

Mumbai: The Centre is selling up to 58 million shares in Axis Bank, held via the Specified Undertaking of the Unit Trust of India (SUUTI) to raise around ₹4,000 crore.

These shares are sold through the offer for sale (OFS) route. The OFS will open for non-retail investors on Wednesday, while retail investors can bid on Thursday.

The government is selling 35 million shares, or 1.21% stake, in the company as a base offer with a green-shoe option of 22 million shares, or 0.74% stake, at a floor price of ₹680 apiece. Shares of Axis Bank gained marginally on Tuesday to close at ₹711.90 on BSE.


SUUTI held a 9.56% stake in Axis Bank as of December 31, 2018. It reduced the stake to 3.45% as of March 31, 2021. SUUTI sold 6.14 million shares of Axis Bank in December last year, garnering ₹374 for the government. In November, it had sold 3.6 million shares for a consideration of ₹221.47 crore. The stock has rallied 18% since December 1, compared with a 15% jump in the Nifty index.

The government has set a target of ₹1.75 lakh crore from disinvestments and strategic sales for FY22. The government is planning a mega initial public offer of Life Insurance Corporation. It has also announced the sale of Bharat Petroleum Corporation.

Earlier this month, the Cabinet Committee on Economic Affairs gave its in-principle approval for strategic divestment and transfer of management control in IDBI Bank. Besides IDBI Bank, the government would privatise two public sector banks during FY22.