The Centre is reportedly looking to raise Rs 22,000 crore by selling its stake in ITC (7.94 pecent) and Axis Bank (4.69 percent), which it holds through the Specified Undertaking of the Unit Trust of India (SUUTI), in a bulk deal on the exchanges.
The government is looking to complete the transaction by end of the first or second week of May, says a report by The Economic Times.
The report adds that mutual fund (MF) houses and the Life Insurance Corporation of India (LIC) are also expected to participate.
Moneycontrol could not independently verify the report.
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“The proposed transaction is expected at a marginal discount of 2-3 per cent to underlying trading price on the transaction date,” the source told the paper, adding that the government is expected to “exit completely” from ITC and Axis.
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The move would be a part of the Centre’s plan to raise Rs 2,10,000 crore through divestment in state-run companies. It has already sold its entire stake in L&T and among others, Rs 90,000 crore is expected to be raised from partial stake sale in LIC and an initial public offer, plus equity sale is planned for IDBI Bank, it added.
SUUTI owns stake in 51 companies for the government, of these stake in NSDL, STCI Finance, UTI-IAS, North Eastern Development Finance Corporation, Stock Holding Corporation of India, UTI Infrastructure technology Services, NSDL e-Governance Infrastructure and Over-the-counter Exchange of India are significant, it noted.
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