Axis Bank OFS retail portion receives just 29% subscription

The retail portion reserved for Axis bank offer for sale (OFS) managed to see a 29% subscription on Thursday. The offer received bids for 16,57,422 shares against 58,07,857 shares reserved for retail investors, according to data available with NSE.

The unsubscribed portion of the OFS will be allotted to non-retail investors. A day earlier, DIPAM Secretary Tuhin Kanta Pandey said that the central government’s sale of shares, held through SUUTI, in Axis Bank got subscribed over four times on the first day of offer on Wednesday.

The government is selling up to 5.80 crore shares or a 1.95% stake held through the Specified Undertaking of the Unit Trust of India (SUUTI) in Axis Bank at a floor price of Rs 680 apiece. This includes a base issue size of 3.60 crore shares and a greenshoe option to sell more than 2.20 crore shares.

“Offer for Sale of SUUTI shares in Axis Bank got a good response on day one. 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,” the Department of Investment and Public Asset Management (DIPAM) Secretary said in a tweet.

The sale of 1.95% stake is expected to fetch around Rs 4,000 crore to the exchequer.

SUUTI held 3.45% stake in Axis Bank at the end of March 2021. The offer was open for subscription during trading hours on a separate window of the stock exchanges from 9:15 am to 3:30 pm (IST).

Earlier in the day, share of Axis Bank closed 1.51% down at Rs 705.90. The benchmark BSE Sensex settled 337 points, or 0.68%, down at 49,564.

(With inputs from PTI)