Top Loser on Sensex, Nifty Bank & More: Here’s Why Axis Bank Tanked 4% Today

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Top Loser on Sensex, Nifty Bank & More: Here’s Why Axis Bank Tanked 4% Today
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Shares of the private sector lender Axis Bank (NS: AXBK ) tanked on Thursday, closing the session nearly 4% lower and hitting the day’s low at Rs 841 apiece.

The Government initiated a stake sale of its entire holding in the private lender on Nov 10 through offer-for-sale or OFS.

The country’s third largest private lender informed the bourses on Wednesday that the seller has proposed to offload 46.5 million equity shares of the company, translating to a 1.55% stake held on Nov 11-12 at a floor price of Rs 830.63/share.

The offer opened for non-retail investors on Thursday, while retail investors can bid on Nov 11, with a 10% OFS reserved for the latter. Further, at least 25% of the offer shares will be reserved for mutual house funds and insurance companies.

In the morning session on Thursday, the non-retail category of the OFS witnessed a subscription of 4%, mopping up bids for 16 lakh shares against a 4.18 crore share issue size.

ICICI Securities (NS: ICCI ), Citigroup (NYSE: C ) Global Markets India and Morgan Stanley (NYSE: MS ) India are the bankers overseeing the deal.

In May 2021, the government sold a 1.95% stake in Axis Bank held through SUUTI raising about Rs 4,000 crore.

On Thursday, Axis Bank was the worst-performing stock not just on the headline index Sensex but also on sectoral indices, including Nifty Bank , Nifty Financial Services and Nifty Private Bank .

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  • Dipak Regmi @Dipak Regmi
    yes
    Like 2
  • Upendra Ahire @Upendra Ahire
    Bandhan Bank is better Option.
    Like 5
    • Rajesh Saini @Rajesh Saini
      in banking sector PSU Bank of Baroda and SBI. in pvt Federal Bank only.
      Like 1
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