Mumbai : The non-retail portion of the offer for sale by the Specified Undertaking of Unit Trust of India (SUUTI) was subscribed 1.16 times, indicating strong demand by the institutions.
Total bids came in at 48.5 million, either at the indicative or cut-off price, against an offer size of 41.88 million. 836.04 each. The floor price of OFS was 830.6.
Retail category offer will be tomorrow. A total of 46.5 million shares were offered to be sold by the government through SUUTI.
The retail category, for which 10% of the offer is reserved, will have to bid above the cut-off price for allotment of shares. Non-retail investors will be able to subscribe for the unsubscribed portion of the retail category. They can also withdraw their bids tomorrow as they have bid at zero margin.
Hemant Nahta, Senior VP, Yes Securities said, “Demand at 116% (for non-retail category) has been strong, considering that this is the second share offering in just 10 days.”
Private equity major Bain Capital sells half per cent stake in Axis Bank through wholesale deal, raises 1487 crores, as on 1st November.
at floor price of 830.63, will get 1.55% stake sale to the government 3865 crore, leading to its total exit from the private sector lender.
Axis reports strong Q2 performance, with net profit up 70% year over year 53.30 billion driven by fewer provisions.
Assigning buy ratings on Axis with a price target of 1005, LKP Securities notes that “QFY23 marks the expression of a sequentially higher NII (Rs 104bn; 17% YoY and 6% QoQ) and a 30% sequential increase in net profit to Rs 53bn.”
In addition, the reported slippage numbers were lower (33.8bn vs 36.8bn in 1QFY23) as the GNPA and NNPA ratio decreased to 2.5% and 0.5%, respectively, as against the GNPA and NNPA ratio of 2.82% and 0.73% in the previous quarter. ,
The Bank’s Provision Coverage Ratio (PCR) was above 93% sequentially. Also credit off-take (17.6% YoY) was maintained, which was on account of growth across sectors.
“The future outlook of asset quality is at a manageable level as strong standard asset coverage (1.4% of gross debt) is likely to absorb defects from the restructuring. In view of the glimmer of adequate COVID buffer, growth rejuvenation and manageable restructuring pool, we recommend a buy,” LKP Securities said.
Stock limit in the current month is 800-900, depending on the selling position of the options traders.
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