InvestorQ : What was the response to the sale of Axis Bank shares by SUUTI on the 19 of May?
Mary Joseph made post

What was the response to the sale of Axis Bank shares by SUUTI on the 19 of May?

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Arusha Ray answered.
1 month ago
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As part of the effort to enhance its divestment collections, the government sponsored SUUTI had decided to sell shares of Axis Bank from the erstwhile US-64 account. The proposed Rs.4,000-crore share sale in Axis Bank by SUUTI was subscribed more over two times. The original OFS issue was only for 522.7 shares but bids received for 1350 lakh shares. This is only non-retail investors and retail OFS will happen on 20 May.

What is interesting is that most of the bids for Axis Bank at the OFS came at a price of Rs.701, which is a premium of Rs.21 over the set floor price of Rs.680 per share. Apart from the institutional portion, the OFS has about 58 lakh shares reserved for retail investors and these will be auctioned to retail investors on Thursday 20 May. Subsequent to the OFS, SUUTI stake in Axis Bank will drop from 3.45% to 1.50%.

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