Kick-starting disinvestment in FY22, the Centre raised round Rs 4,000 crore on Thursday by promoting 1.95% from the Specified Undertaking of the Unit Trust of India or SUUTI’s holding in Axis Bank. Prior to the OFS, SUUTI held 3.45% in Axis Bank.
SUUTI had proposed to promote as much as 3.6 crore fairness shares, representing 1.21% of paid-up fairness share capital of Axis Bank. It had additionally retained the choice to promote a further 2.2 crore shares or 0.74% of fairness share capital. The ground value for Axis Bank OFS was set at Rs 680/share. The OFS was opened on May 19 for non-retail and May 20 for retail and non-retail.
“Issue subscribed over 4 times of base size at a clearing price above the floor price by non-retail investors. SUUTI has decided to exercise the green shoe option,” division of funding and public asset administration (DIPAM) secretary Tuhin Kanta Pandey had tweeted on Wednesday after Day 1 of OFS.
On Day 2, the retail portion of the Axis Bank OFS managed to garner simply 28.5% subscription. As towards 58.07 lakh shares reserved for retail buyers, bids had been obtained for less than 16.6 lakh shares, in response to knowledge offered by the exchanges.
The unsubscribed portion of the OFS will likely be allotted to non-retail buyers. Clearing value of Rs 701.55 was mounted for each retail and non-retail bidding of Axis Bank shares. Shares of Axis Bank closed at Rs 705.9 on the BSE on Thursday, down 1.51% from the closing value of the day gone by.
The begin of the Centre’s bold Rs 1.75 lakh-crore disinvestment programme for FY22 has been delayed because of the second wave of Covid-19.