In a race against time for the government to meet the 4.8% fiscal deficit target; the centre is hoping to get lucky on Valentine’s Day (February 14).
The government is set to sell its stake in Axis Bank, which forms part of the SUUTI portfolio. Government will sell about 10.3 percent stake on February 14 via a block deal.
In fact bankers are in the process of talking to high networth individuals (HNIs) as well as Qualified Institutional Buyer (QIB) for participation in the stake sale.
According to sources, The government has also prepared a negative list of investors who will not be able to participate in the block deal. This means the final investors that come in will be after finance ministry’s approval.
The government approved Axis’ proposal to raise its Foreign Investment limit to 62 percent from 49 percent. This move was aimed to ensure high participation from foreign investors so that the government could meet its annual disinvestment target of Rs 40,000 crore before March 31.
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