The Specified Undertaking of the Unit Trust of India or SUUTI will sell a little more than half its shareholding in Axis Bank Ltd. through an offer for sale.
SUUTI proposes to sell up to 3.6 crore equity shares, representing 1.21% of paid up equity share capital, the bank said in an exchange notification. It also retains the option to sell an additional 2.2 crore shares or 0.75% of equity share capital.
The floor price for the OFS is set at Rs 680 per share. The offer for sale will be open on May 19 and May 20.
SUUTI currently holds 10.32 crore shares or 3.45% in Axis Bank.
At the floor price, the OFS will help unlock between Rs 2,448 crore and Rs 3,944 crore, depending on whether SUUTI sells the base number of shares or the full 5.8 crore shares up for sale.
SUUTI was set up following the restructuring of the erstwhile Unit Trust of India. It came into effect on Feb. 1, 2003. Apart from Axis Bank, SUUTI held shares in companies like ITC Ltd. and Larsen & Toubro Ltd., which it has been slowly exiting.
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