The government is now looking to hire six banks as against the plan of having three banks earlier. An earlier tender had received poor response from investment banks as it barred them from managing fund-raising plans of rivals competing with companies in which SUUTI held stakes. SUUTI has minority stakes in 51 listed and unlisted companies, with most of its value locked in Axis Bank (11.93% stake), ITC (11.17%) and L&T (8.32%). At current market prices, the government could raise Rs.16,628.86 crore by selling its entire stake in Axis Bank. In March 2014, the government sold a 9% stake in Axis Bank held through SUUTI for over Rs.5,500 crore.

Source: Mint August 24, 2016 19:07 UTC