New Delhi: Government will sell less than half of its stake held through SUUTI in the country's third largest private sector lender Axis Bank on Friday through a block deal for upto Rs 5,700 crore.
Specified Undertaking of UTI (SUUTI), formed in 2003 is an offshoot of erstwhile UTI, holds 20.72 percent in Axis Bank.
The government is selling 4.2 crore shares or about nine percent of its holding in a block deal tomorrow in the price band of Rs 1,290-1,357 per share, sources said.
Merchant bankers have initiated the process for stake sale, they added.
Shares of the lender closed 2.1 percent down at Rs 1,356.85 apiece on the BSE today.
The government as per the revised Budget estimate expects Rs 3,000 crore from divestment of residual government stake in private sector companies in the current fiscal ending March.
Block deal is a trade with a minimum quantity of 5 lakh shares or minimum value of Rs 5 crore executed through a single transaction on this separate window of the stock exchange.
SUUTI in January had appointed three merchant bankers --J P Morgan, Citigroup Global Markets and JM Financial -- for sale of its stake in Axis Bank.
Sources said there will be a six month lock-in period following the share sale.
The other promoters of the bank are Life Insurance Corporation, General Insurance Corporation, New India Assurance and National Insurance Company.
Besides, SUUTI holds 11.32 percent stake in diversified conglomerate ITC and 8.2 percent in engineering firm L&T.
First Published: Thursday, March 20, 2014, 19:10