Name: Government aims to raise Rs 22,000 crore from ITC, Axis stake sale
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Government aims to raise Rs 22,000 crore from ITC, Axis stake sale

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Search+›››› Government aims to raise Rs 22,000 crore from ITC, Axis stake saleBy , Last Updated: May 06, 2020, 05:30 PM ISTSynopsisNew Delhi: The is seeking to raise around to Rs 22,000 crore by selling its entire stake in FMCG–hospitality–cigarette major and , one of the leading private sector lenders.“Given the current timeline, the government is hoping to complete the transaction by the end of this week or early next week,” a person familiar with the development told ET. The transaction will be done through a bulk deal on the Indian bourses, he added.The government held stakes through Specified Undertaking of the Unit Trust of India (), which owns 7.94 per cent in ITC and 4.69 per cent in Axis Bank, as on March 31, 2020.Shares of Axis Bank settled at Rs 389.2, down 3.38 per cent, while ITC was marginally down (15 paise) to Rs 173.9 at close of market hours Tuesday on the BSE. At this price, the combined value of SUUTI stake in ITC and Axis Bank is Rs 22,123 crore.The Axis Bank stock has fallen 53 per cent in the last three months as investors expect a surge in bad loans. ITC has come down 19 per cent compared with the Sensex, which has lost about a quarter.I don't want to see these stories becauseFor the current fiscal, the government has sought to raise an ambitious Rs 2,10,000 crore from the sale of holdings in state-run companies. This includes Rs 90,000 crore to be raised from the sale of a minority stake in Life Insurance Corp (LIC) through an initial public offer and equity sale in IDBI Bank.For 2019-20, the government lowered its disinvestment target to Rs 65,000 crore from the budget estimates of Rs 1.05 lakh crore.Sources said that the various mutual funds and LIC are expected to participate in the proposed share sale. “The proposed transaction is expected at a marginal discount of 2-3 per cent to underlying trading price on the transaction date,” said a person quoted above.SUUTI has minority stakes in 51 listed and unlisted companies, with most of its value locked in Axis Bank, ITC and L&amp;T. It has already sold its entire stake in L&amp;T. “After the current round of share sale, the government is likely to exit completely from these two companies,” said a person familiar with the transaction.Of the 51 companies, eight entities in which SUUTI owns either significant minority or majority stake are — NSDL, STCI Finance, Over-the-counter Exchange of India, Stock Holding Corporation of India, UTI-IAS and UTI Infrastructure Technology Services, North Eastern Development Finance Corporation and NSDL e-Governance Infrastructure.Experience Your Economic Times Newspaper, The Digital Way!&nbsp;»(What's moving and Track , and on . Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, .) Download to get Daily Market Updates &amp; Live Business News.Pick the best stocks for yourselfPowered bySubscribe to As on 04:05 PM | 13 Sep 2022Discover Mutual FundsWhy follow tips? Choose your winners rationally in 3 simple steps!Start Now456.80334.40393.601544.952619.753229.35107.7517.451513.10422.65XContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories &amp; personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &amp; in-depth stock reportsSubscribe NowTo read full story, subscribe to ET Prime₹34 per weekBilled annually at₹2499Already a Member? Super Saver Sale - Flat 30% OffOn ET Prime MembershipAlready a Member? Rs 49 for 1st monthThen Rs. 1,749 per yearValid only with UPI, Credit &amp; Debit Cards Autopay---Subscribe Now(Credit card mandatory)You can cancel your subscription anytime---Subscribe Now(Pay Using Netbanking/UPI/Debit Card)Netbanking, Credit &amp; Debit CardSubscribe with Google₹399MonthlyPLANBilled Amount ₹399No Trial Period₹399₹208(Save 49%)YearlyPLANBilled Amount ₹2,499₹399₹150(Save 63%)2-YearPLANBilled Amount ₹3,599$13.99(Save 40.0%)$33.99Get ET Prime for just ₹2499 ₹1749/yrSpecial OfferGet Flat 20% OffON ET PRIME MEMBERSHIPStories you might be interested inSUBMIT

Search+›››› Government aims to raise Rs 22,000 crore from ITC, Axis stake saleBy , Last Updated: May 06, 2020, 05:30 PM ISTSynopsisNew Delhi: The is seeking to raise around to Rs 22,000 crore by selling its entire stake in FMCG–hospitality–cigarette major and , one of the leading private sector lenders.“Given the current timeline, the government is hoping to complete the transaction by the end of this week or early next week,” a person familiar with the development told ET. The transaction will be done through a bulk deal on the Indian bourses, he added.The government held stakes through...

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Government aims to raise Rs 22,000 crore from ITC, Axis stake sale

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