Axis Bank reacts to "SUUTI"

Axis Bank is in the news today. The Govt stated that it plans to launch an offer-for-sale to divest up to 3% in the Bank, which it holds through Specified Undertaking of United Trust of India (SUUTI). Govt’s total holding in Axis Bank through SUUTI is 9.56% of which 1.98% will be sold at a floor price of Rs.689.52, a discount of 3% over yesterday’s price. An additional 1.02% might be also be sold.

The sale is expected to garner around Rs. 5500 crore and the main objective of this stake sale is to meet some part of its Rs.80,000 crore divestment target.

The stock price is in the red but not “crash” kind of a red, going down over 1.5% to an intra day low at Rs.698.50.