The Government of India divested its 9 percent stake in Axis Bank on 21 March 2014. The divestment resulted into generation of 5500 crore rupees.
Through a trust fund called Specified Undertaking of the Unit Trust of India (SUUTI), Government of India disposed 42.26 million shares or 9 percent of Axis Bank’s share capital.
Axis Bank is the third largest private sector bank of India in which Government of India holds 20.7 percent share by assets.
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 31 March 2014.
Life Insurance Corporation (LIC) bought 85.46 lakh shares or 20.23 percent of the total 42.26 crore shares on offer with an investment of 1122 crore rupees. Citigroup Global bought 38.23 lakh shares with an investment of 503 crore rupees followed by New World Fund (26.88 lakh shares) and Goldman Sachs Singapore (23.50 lakh shares).
Now, SUUTI will remain the largest shareholder with 11.72 percent stake followed by LIC.
Citigroup Inc, JPMorgan Chase & Co and JM Financial Ltd were appointed by the government in January 2014 to manage the stake sale.