Govt seeks up to $935 million in Axis Bank stake sale: Sources
Mar 20 2014 , New Delhi/Mumbai
The government holds in total 20.7 percent of Axis Bank, India's third-largest private-sector bank by assets, via a trust fund called Specified Undertaking of the Unit Trust of India.
The share sale is part of the government's campaign to raise revenues and meet its revised fiscal deficit target of 4.6 percent of gross domestic product in the financial year ending on March 31.
The indicative price band for the Axis Bank share sale has been set at roughly 1,290 rupees to 1,357 rupees a share, said the sources, a discount of as much as 5 percent from its closing price on Thursday of 1,357.35 rupees.
The sources declined to be named as they were not authorised to speak to the media. India's finance ministry officials were not immediately available for comments.
The government, through the Special Undertaking of Unit Trust of India, also has stakes in cigarette maker ITC Ltd and engineering and construction firm Larsen & Toubro Ltd.
Citigroup Inc, JPMorgan Chase & Co and India's JM Financial Ltd were appointed by the government in January to manage the stake sale.