Government to top $3.1 billion asset sale target with Axis Bank sale
The government is set to raise about Rs.21,400 cr in the fiscal ending March, higher than theRs.19,000 cr target set
A file photo of P. Chidambaram. Chidambaram on 28 February 2013 set a target of raising Rs.54,000 crore in the 12 months to 31 March. He cut the forecast to Rs.19,000 crore on 17 February. Photo: Bloomberg
India raised about Rs.5,600 crore from the sale of a 9% stake in Axis BankLtd, helping finance minister P. Chidambaram surpass his $3.1 billion asset sale target for the year.
The government priced about 42.2 million Axis Bank shares at Rs.1,313.25, a 3.2% discount to Thursday’s closing price, three people with knowledge of the matter said, asking not to be identified as the details are private. The average price may increase as some investors placed orders at higher rates, they said.
The stake sale bolsters efforts by Chidambaram to narrow the nation’s budget deficit to 4.6% of gross domestic product in the year to 31 March. The government is set to raise about Rs.21,400 crore selling stakes in companies in the fiscal ending this month, higher than the Rs.19,000 crore target set on 17 February.
Citigroup Inc., JM Financial Ltd and JPMorgan Chase and Co. arranged the Axis Bank share sale, the people said. The banks working on the deal will get a fee of Rs.1, while the expenses will be paid by the government, people familiar with the matter said 21 January.
The government held a 20.7% stake in the bank before the sale, through the Specified Undertaking of the Unit Trust of India (SUUTI), exchange filings show. K.N. Prithviraj, the administrator of SUUTI, didn’t answer three calls to his mobile phone seeking comments on the share sale.
Axis Bank gained 2.9% to Rs.1,397 at 2.53pm, making it the best performing stock on the 12-company S&P BSE Bankex index.
Exchange-traded fund
The finance ministry is in the process of raising Rs.3,000 crore through an exchange-traded fund of state-run company shares, Alok Tandon, joint secretary at India’s disinvestment department, told reporters 14 March. The sale managed by Goldman Sachs Asset Management (India) Ltd will close on Friday.
The disinvestment department has raised as much as Rs.12,800 crore as of 14 March from sale of stakes in companies including Indian Oil Corp. Ltdand Bharat Heavy Electricals Ltd, exchange filings show.
Chidambaram on 28 February 2013 set a target of raising Rs.54,000 crore in the 12 months to 31 March. He cut the forecast to Rs.19,000 crore on 17 February. Bloomberg
The government is set to raise about Rs.21,400 cr in the fiscal ending March, higher than theRs.19,000 cr target set
A file photo of P. Chidambaram. Chidambaram on 28 February 2013 set a target of raising Rs.54,000 crore in the 12 months to 31 March. He cut the forecast to Rs.19,000 crore on 17 February. Photo: Bloomberg
India raised about Rs.5,600 crore from the sale of a 9% stake in Axis BankLtd, helping finance minister P. Chidambaram surpass his $3.1 billion asset sale target for the year.
The government priced about 42.2 million Axis Bank shares at Rs.1,313.25, a 3.2% discount to Thursday’s closing price, three people with knowledge of the matter said, asking not to be identified as the details are private. The average price may increase as some investors placed orders at higher rates, they said.
The stake sale bolsters efforts by Chidambaram to narrow the nation’s budget deficit to 4.6% of gross domestic product in the year to 31 March. The government is set to raise about Rs.21,400 crore selling stakes in companies in the fiscal ending this month, higher than the Rs.19,000 crore target set on 17 February.
Citigroup Inc., JM Financial Ltd and JPMorgan Chase and Co. arranged the Axis Bank share sale, the people said. The banks working on the deal will get a fee of Rs.1, while the expenses will be paid by the government, people familiar with the matter said 21 January.
The government held a 20.7% stake in the bank before the sale, through the Specified Undertaking of the Unit Trust of India (SUUTI), exchange filings show. K.N. Prithviraj, the administrator of SUUTI, didn’t answer three calls to his mobile phone seeking comments on the share sale.
Axis Bank gained 2.9% to Rs.1,397 at 2.53pm, making it the best performing stock on the 12-company S&P BSE Bankex index.
Exchange-traded fund
The finance ministry is in the process of raising Rs.3,000 crore through an exchange-traded fund of state-run company shares, Alok Tandon, joint secretary at India’s disinvestment department, told reporters 14 March. The sale managed by Goldman Sachs Asset Management (India) Ltd will close on Friday.
The disinvestment department has raised as much as Rs.12,800 crore as of 14 March from sale of stakes in companies including Indian Oil Corp. Ltdand Bharat Heavy Electricals Ltd, exchange filings show.
Chidambaram on 28 February 2013 set a target of raising Rs.54,000 crore in the 12 months to 31 March. He cut the forecast to Rs.19,000 crore on 17 February. Bloomberg
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