Govt to exit Axis Bank with sale of 1.55% stake on November 10, 11

Update: 2022-11-10 06:50 GMT
The deal will add about 2.5 million credit cardholders, making Axis Bank one of the top three cards businesses in the country

The Union government, under the Specified Undertaking of the Unit Trust of India (SUUTI), plans to sell its entire 4.65 crore shares representing 1.55% stake in Axis Bank, as per a regulatory filing.

With the sale, the government would completely exit the private sector lender.

Also read: Axis Bank shares climb over 6.5% post earnings announcement

As of September 2022, SUUTI held 4,65,34,903 shares representing 1.55% stake in the bank. The government, at the current market price, is expected to realise about ₹4,000 crore from the share sale.

Shares of Axis Bank on Wednesday closed at ₹874.35, up 0.17% over the previous close on the BSE. Shares held in dematerialised 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.

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The floor price for the offer is ₹830.63.

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

Also read: Axis bank signs MoU with Indian Air Force to manage salary accounts

(With agency inputs)

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