Government announces Rs 5,700 crore sale of Axis Bank shares

The government on Thursday initiated the process to sell a part of its stake in private lender Axis Bank through the Offer for Sale (OFS) route. Institutional investors can bid for Axis Bank shares till 10.30 p.m. tonight, the government said.

The government is selling 4.2 crore shares, or 9 per cent stake in Axis Bank. Bids can be placed from price ranging between Rs 1,290-1,357.35. At the lower end, the bid price represents a 5 per cent discount from Thursday's closing price of Rs 1,357.35 on the National Stock Exchange.

The trade will be executed on Friday, March 21. Settlement date is Tuesday, March 25, the government said.

The government is expected to raise $938 million or nearly Rs 5,700 crore (at 1 dollar=61 rupee) if the sale is executed at the higher end.

The government held 20.72 per cent stake in Axis Bank as on December 31, 2013, through a trust fund called Specified Undertaking of the Unit Trust of India (SUUTI).

The decision to sell Axis Bank shares will help the government meet the fiscal deficit target for the current fiscal year.