Govt raises over Rs 5,550 cr from Axis Bank stake sale

NEW DELHI: The government of India on Friday raised over Rs 5,550 crore by selling 9 per cent of its stake in Axis Bank held through SUUTI, close to double of its Rs 3,000 crore budget target from residual share sale in private sector firms this fiscal.
As per the bulk deal data on the stock exchanges, 4.2 crore Axis Bank shares were sold at an average price of Rs 1,315.13 apiece. This is at a 3.07 per cent discount to yesterday’s closing price.
The share sale fetches Rs 5,557 crore to the exchequer.
LIC has emerged as the single largest investor buying over 85 lakh shares at Rs 1,313.25, thereby pumping in over Rs 1,116 crore. Other major buyers of the shares include Citigroup Global Markets Mauritius and Goldman Sachs Singapore. Shares of Axis Bank closed Rs 36.55, or 2.7 per cent, higher at Rs 1,393.40. The scrip had dipped over 3 per cent in the morning trade to a low of Rs 1,313.25.
The merchant bankers yesterday initiated the process of stake sale and had fixed a price band of Rs 1,290-1,357 a piece for the deal.
“The stock will bounce back on strong fundamentals of the bank. There was demand in the counter and now with the stake sale supply has come,” CNI Research CMD Kishore P Ostwal said. —PTI