FM may sell part of SUUTI holdings

New Delhi, Jan. 13: The Finance Ministry may consider selling part of its stake in Axis Bank and ITC, held through SUUTI, in next few months, an official said.

As on September 30,

2018, Specified Undertaking of Unit Trust of India (SUUTI) held around 9.63 per cent stake in Axis Bank, 7.97 per cent in ITC and 1.80 per cent in L&T.

While the government is waiting for L&T to launch a buyback offer to tender its shares; for holding in Axis Bank and ITC, it would consider off-market deals, an official said.

“We are open to selling stake in Axis Bank and ITC through bulk or block deals. It all depends on the valuation,” the official told PTI.

Shares of Axis Bank settled at `666.50, up 0.53 per cent, while ITC was up

2.02 per cent at Rs 295.40 at close of market hours on January 11.

A bulk deal is a deal in which more than 0.5 per cent of the total number of shares of a listed company are sold or bought by a single investor in the open market. In a block deal, two parties make a transaction involving shares worth at least `5 crore. Block deal transactions are conducted in a separate trading window.

Infra major L&T has already approached Sebi for launching a share buyback programme. The government would participate in the buyback programme, and is expecting to get around `700 crore.