Govt may sell part of SUUTI hold­ing in Axis Bank, ITC

Hindustan Times (Noida) - - HTBUSINESS - Press Trust of In­dia feed­[email protected]

NEW DELHI: 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% stake in Axis Bank, 7.97% in ITC and 1.80% 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%, while ITC was up 2.02% at ₹295.40 at close of mar­ket hours on Jan­uary 11.

A bulk deal is a deal in which more than 0.5% 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.

In­fra­struc­ture ma­jor Larsen & Toubro (L&T) has al­ready ap­proached mar­ket reg­u­la­tor Sebi for launch­ing a share buy­back pro­gramme. The gov­ern­ment would par­tic­i­pate in the buy­back pro­gramme, and is ex­pect­ing to get around ₹700 crore. The gov­ern­ment had sold 2.5% stake in L&T held through SUUTI in June 2017 through block deals in the mar­ket.

In Fe­bru­ary 2017, the gov­ern­ment had raised ₹6,700 crore through sale of 2% stake held through SUUTI in to­bacco-tofmcg firm ITC.

In Novem­ber 2016 it sold 1.63% in L&T, while in March 2014 it had sold 9% stake in Axis Bank to raise ₹5,500 crore through block deals.

SUUTI hold­ings in ITC, Axis Bank and L&T are also part of Bharat 22 ex­change-traded fund (ETF).

BLOOMBERG

As on Septem­ber 30, 2018, SUUTI held around 9.63% stake in Axis Bank, 7.97% in ITC and 1.80% in L&T.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.