The government started a new initiative for the people who are retailers and looking to invest in the market, the government has offered about 4000 crores OFS (offer for sale) that they have done with Axis Bank and their initiative has been getting a great response from the non-retailers which happened on Wednesday as the response from them has exceeded the vision of the government as it has been oversubscribed by more than two times.
Investors will be getting a chance again to invest today and it has been said by many analysts that people should not miss this opportunity, Siddharth Purohit who works for SMX global as an equity analyst has also stated that this offer for sale is going to be beneficial for the investors as this is going to reduce the volatility of the stock as it moves forward and is going to put it in the growth trajectory.
It is also a fact that the government through an undertaking which is specified by the Unit Trust Of India has been making up a tie with the Axis Bank through OFS for a while now and it is evident as if you look into the last year the center sold around 10 million shares which are worth Rs.600 crore which is part of the sale stake strategy.
And according to the current scheme, they are going to sell about 1.21 percent stake and about 36 million shares that they are going to invest in Axis Bank, and about 22 million shares to one of the private-sector lenders.
The shares have seen a growth of 1 percent which has happened on the National Stock Exchange which happened on Thursday and has been trading around 708 apiece and when you compare it with Nifty 50 which was down by 0.4 percent but so far when you talk about the current financial year, the stock has been performing pretty well as it has managed to add about 2.7 percent which is for the NSE and also has seen a jump of 2.3% when you talk about Nifty50.
The lenders are going to be along with term bet and they should invest as the OFS is offering about a 5% of discount which is going to be beneficial on a long-term basis. Axis Bank is also working and focusing on their technological back end as that is going to help them to keep the data more prominently and that is exactly what they are going for.
