The government's attempts to monetise a portion of the shares held by the Specified Undertaking of UTI (SUUTI) appears to be gathering steam.
The finance ministry is considering a proposal to sell some shares of ITC, Axis Bank and Larsen & Toubro, held by SUUTI - the restructured unit of the erstwhile UTI - as the government rushes to meet its disinvestment target for the current financial year.
The proposal involves selling stake through an offer for sale (OFS) in Axis Bank. It could also look at the possibility of creating a basket of the three stocks and sell it through the secondary market.
Sources said these proposals were still on the drawing board and the ministry was yet to take a decision on the matter.
It is also not clear whether the ministry is planning such a stake sale in the current financial year or later, but sources said it was unlikely to rush into trimming SUUTI's holdings in these three stocks, especially ITC and L&T, which did not have majority shareholders.
SUUTI, created in 2002 after the then UTI was wound up following the US 64 fiasco, owns 11.54 per cent in ITC, 23.6 per cent in Axis Bank and 8.3 per cent in L&T.
The government had split UTI into two - the existing UTI Mutual Fund and SUUTI. The latter held the assets and liabilities of the schemes of the original UTI and was taken over by the government.
The total value of SUUTI's holding in the three stocks was a little over Rs 47,000 crore (Rs 470 billion)