Govt decides to sell it’s balance stake in Axis. Technically a wrong time.

Govt holds stake in Axis bank through Specified Undertaking of UTI (SUUTI).

Shareholding was transferred to SUUTI (an investment vehicle) in 2003 when a scheme of the Unit Trust of India failed and was bailed out. At that time, SUUTI held investments in more than 40 companies, which it has been slowly exiting since then.

Originally, SUUTI held 20.72% stake in Axis bank. The 1st sell out of this happened in March 2014 of 9% and since then government has been gradually selling as and when deem fit. After the last tranche of 1.95% in May 2021, SUUTI currently holds just 1.55% stake in Axis.

Govt has now decided to offload this completely on November 10-11 at a floor price of Rs 830.63 per share. The share closed at Rs 873.7/ share. Govt is expected to raised Rs 4,000 crore through this sale transaction.

Govt is obviously doing the sale to bridge the disinvestment target deficit and take advantage of the strong capital markets.

However, technically it seems the stock has recently crossed a major long term resistance, is closer to the lower trending line and hence maybe getting set for a major up move.

Companies -
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x