The government, through the Specified Undertaking of the Unit Trust of India or SUUTI, would sell 46.5 million shares or entire 1.55% stake in private lender Axis Bank for two days on November 10-11 through an OFS at a floor price of Rs 830.63.
As much as 10% of the OFS has been reserved for retail investors, who intend to bid for not more than Rs 2 lakh in the OFS. They would be allowed to place their bids on November 11.
A retail investor can bid at any price above the floor price. “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,” SUUTI said in an exchange filing.
A minimum of 25% of the offer shares shall be reserved for mutual funds and insurance companies. ICICI Securities, Citigroup and Morgan Stanley have been appointed as brokers for the OFS.
Earlier in the month, American private equity major Bain Capital had sold 0.5% stake through a bulk deal in Axis Bank for Rs 1,487 crore.
Shares of the lender, which has jumped over 12% in the last one month, ended flat at Rs 874.35 on BSE today.
