| Log in

SUUTI Hires JPMorgan,Citibank & ICICI Sec To Advise On Axis Stake Sale

30 August, 2008

Special Undertaking of UTI (SUUTI), which was formed to take over the assets of US-64 after they plunged drastically in 2002, has appointed JPMorgan Chase & Co., Citibank NA and ICICI Securities Ltd to advise it on the sale of a 21% stake in Axis Bank Ltd. The 21% stake is to be sold in block deals to institutional investors on local bourses over the next two months, according to a report. The third largest private sector lender has a market capitalisation of nearly $6 billion (Rs 25,872 crore), and the 21% stake would be worth $1.24 billion (Rs 5,433 crore). The shares of Axis Bank are trading at Rs 723, as against their 52-week high of Rs 1291. Though SUUTI owns 27% stake in Axis, the other 6% stake cannot be sold as there is a lock-in clause on 6% of the equity, following an earlier QIP.

 

LIC is one of the major shareholder in Axis, holding more than 10% stake. Five other insurance firms also together hold 55 stake. Some other institutional shareholders include ICICI Prudential Life Insurance, HSBC Holdings and Orient Global Tamarind Mauritius, who hold between 4-5% stake. Earlier it was reported that bank is looking to bring in broad set of investors through a QIP. This was to ensure that the banking regulator’s norm of capping a single investor’s shareholding in a bank at 5% is adhered to.   

 

SUUTI To Transfer L&T, ITC Stake To Govt

In another development, SUUTI will transfer its residual stake in Larsen & Toubro Ltd and ITC Ltd to government after being wound up in march 2009. SUUTI holds a 9% stake in L&T, which is worth Rs 6,813 crore at current market prices. Its stake in ITC stands at nearly 12%, which is worth Rs 8,547 crore.

 

UTI AMC To Get Strategic Partner

Also UTI Asset Management Company is bringing in a strategic investor. The firm had differed its IPO last month due to market conditions. UTI AMC planned to dilute 38% of its stake in the public offering, with 20% stake to be diluted in the pre-IPO placements. The firm was planning to raise $500 million from the IPO.


Leave Your Comment
Government Plans Big Ticket Stake Sale In Axis Bank, PSU Banks

Government Plans Big Ticket Stake Sale In Axis Bank, PSU Banks

Pallavi S 9 years ago
The government is looking to dilute a large part of its equity stake in the...
Government Plans Big Ticket Stake Sale In Axis Bank, PSU Banks

Government Plans Big Ticket Stake Sale In Axis Bank, PSU Banks

Pallavi S 9 years ago
The government is looking to dilute a large part of its equity stake in the...
Govt sells around 9% of Axis Bank for $912M; LIC, Goldman Sachs among buyers

Govt sells around 9% of Axis Bank for $912M; LIC, Goldman Sachs among buyers

TEAM VCC 4 years ago
The government-controlled Specified Undertaking of Unit Trust of India (SUUTI)...
No Comments

SUUTI Hires JPMorgan,Citibank & ICICI Sec To Advise On Axis Stake Sale

Powered by WordPress.com VIP