Govt's move to pare stake in Axis Bank fuels hope of divestment by stealth

Last week, it sold shares worth Rs 220 crore in the open market without making a formal announcement. The deal came to light only this week

The Centre’s move to pare its holding in Axis Bank--held under the Specified Undertaking of The Unit Trust of India’s (Suuti)--has stoked hopes of disinvestment by stealth. Last week, the government sold shares worth Rs 220 crore in Axis Bank in the open market. The transaction, carried out without a formal announcement, came to light only this week. Market players said the government should pursue the same strategy for selling shares in listed PSUs. A prior announcement often leads to bear hammering of the stock causing harm to the government as well as other shareholders, they add.

The government usually