Investors lapped up the offer for sale (OFS) of Axis Bank on Tuesday. The non-retail portion was subscribed 2.56 times, institutional investors bid for 116.9 million shares against 45.6 million reserved for them.
On Tuesday, the Specified Undertaking of Unit Trust of India (SUUTI) informed the exchanges it has decided to exercise the greenshoe option to sell an additional 26 million or 1.02 per cent of equity shares in the company.
Earlier, SUUTI said it proposed to sell up to 50.7 million shares, with an option to additionally sell 26.3 million shares it owns in Axis Bank. The floor price was set at Rs 689.52 a share, roughly a discount of 3 per cent to the February 11 closing price of Rs 710.35 a share.
The government is expected to raise Rs 5,316 crore through the sale. The bidding for retail investors and non-retail investors, who choose to extend their un-allotted bids, will be on Wednesday.
SUUTI, which was created to take over parts of the assets and liabilities of the now-defunct Unit Trust of India (UTI), owned 9.56 per cent stake in Axis Bank at the end of December 2018. The sale is a part of the government’s efforts to meet its disinvestment target of Rs 80,000 crore.