Govt sells Axis Bank stake for over $900 mln, say sources

Last updated on: March 21, 2014 16:49 IST

The government had appointed Citigroup Inc, JPMorgan Chase & Co and India's JM Financial Ltd to manage the stake sale in Axis Bank.

An employee speaks on his mobile phone as he walks inside Axis Bank's corporate headquarters in Mumba The government has raised more than $900 million by selling a nine per cent stake in Axis Bank Ltd, two sources with direct knowledge of the development said on Friday.

The government held 20.7 per cent in Axis Bank, India's third-largest private-sector bank by assets, via a trust fund called Specified Undertaking of the Unit Trust of India (SUUTI), before the stake sale.

The share sale was launched on Thursday in the indicative price band of roughly Rs 1,290 to Rs 1,357 a share, a discount of as much as 5 per cent from its closing price on Thursday of Rs 1,357.35.

The issue is part of the government's campaign to raise revenues and meet its revised fiscal deficit target of 4.6 per cent of gross domestic product in the financial year ending on March 31.

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