Two months after the Union Cabinet cleared the Government's proposal to revive the defunct Specified Undertakings of Unit Trust of India (SUUTI) which holds shares in ITC, Axis Bank and l&T, the Finance Ministry is all set to put on sale part of its stake in Axis Bank on Friday.
The move through which it is expected to generate Rs5,700 crore, the Government will sell less than half of its stake held through SUUTI in the country's third largest private sector lender Axis Bank via a block deal, Economic Affairs Secretary Arvind Mayaram said on Thursday.
SUUTI, formed in 2003 is an offshoot of the erstwhile UTI, holds 20.72 per cent in Axis Bank.The Government is selling 4.2 crore shares or about nine per cent of its holding in a block deal tomorrow in the price band of Rs1,290-1,357 per share.Merchant bankers have initiated the process for stake sale.
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 Rs5 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.According to Finance Ministry, there will be a six month lock-in period following the share sale.