The government will sell 46.5 million shares, or the whole 1.55% ownership in the private lender Axis Bank, through an OFS for two days on November 10 and 11, with a floor price of Rs 830.63. This would be done through the Specified Undertaking of the Unit Trust of India, or SUUTI.
Retail investors who want to bid for no more than Rs 2 lakh in the OFS have been allocated up to 10% of the OFS. On November 11, they would be able to submit their proposals.
“In case of oversubscription in the retail category, if the aggregate number of offer shares bid for at a particular clearing price/cut-off price, as the case may be, is more than the available number of equity shares at such price, then the allocation for such bids will be done on a proportionate basis,” said SUUTI in an exchange filing.
Shares of the offer must be set aside for mutual funds and insurance firms at a minimum of 25%. The OFS has chosen ICICI Securities, Citigroup, and Morgan Stanley as its brokers.
American private equity giant Bain Capital sold a 0.5% stake in Axis Bank NSE -3.43% earlier this month for Rs 1,487 crore through a bulk sale.
The lender’s stock, which has increased more than 12% in the past month, concluded today’s trading session at Rs 874.35 in a flat price.