Axis Bank-50 percent Share holding to be diluted by Government of India
Government of India is planning to dilute the 50% shares held in Axis Bank Limited. Government has picked JPMorgan Chase & Co, Citigroup Inc and JM Financial Ltd to sell the stocks.
Shares are expected to be sold at a price of $925 Million (Approximately 6000 crore INR). The sale is made to to narrow the government's fiscal deficit to 4.8% of GDP.
Indian Government seems to be in deep trouble as treasury is empty due to vote bank schemes. And we may see more dilutions in coming days.
The schemes by Indian Government are taking its toll now. Suppose if crises hit the India now, will the Indian Government able to provide any incentive to corporates to survive the crises.
The situation show the impacts of things done for personal benefit of a party rather than in interest of country.