INSUBCONTINENT EXCLUSIVE:
By Pavan BurugulaMUMBAI: The current bout of persistent selling in Indian equities has prompted the government to go slow on its proposed
stake sale in Axis Bank, and an extended volatile run in growth assets may also lead New Delhi to defer some of the initial share sales
scheduled to be completed in FY19.
Market sources told ET that the government was initially planning to sell up to 4 per cent of its stake
in Axis Bank by early November
However, the Department of Public Asset Management (Dipam) decided to postpone the sale after meeting the empaneled bankers last week
ambitious plan to garner Rs 80,000 crore through divestments this fiscal: It has raised only Rs 7,000 crore until now
The government owns 9.6 per cent in Axis Bank through Specified Undertaking of Unit Trust of India (SUUTI)
government was seeking to raise around Rs 7,000 crore through the stake sale
We had already conducted few roadshows earlier this year
We were optimistic about the share sale since Axis Bank stock was doing well until August
investment banker privy to the development.
The Centre has been seeking to offload the bulk of its Axis Bank stake for more than three years
Axis Bank has underperformed its private peers by a huge margin since 2016
The Private Bank Nifty has gained close to 60 per cent since the beginning of 2016, while Axis Bank shares have only managed to climb 25 per
catching up with the broader market
In fact, a bulk of the 25 per cent gains made by Axis Bank stock since 2016 was between June and August this year.
The government had
It has also diluted a marginal stake in the private lender through the newlylaunched CPSE Exchange Traded Fund (ETF).
The ongoing market
Jayashankar, senior executive director of Kotak Investment Banking
offerings lined up currently, including the launch of a CPSE Debt ETF, another tranche of Bharat 22 ETF, and IPOs of several small and
midsized PSUs, including the Indian Railway Catering and Tourism Corporation (IRCTC)
Bankers are also working on offers for sale (OFS) in Coal India and NBCC.
