Is it true that the government is planning to sell its stake in ITC and Axis Bank and will that impact the stock price?

This plan has been on the cards for quite some time now. In the current financial crunch triggered by the COVID-19, the government is looking to raise Rs.22,000 crore by selling its 7.94% stake in ITC and its 4.69% stake in Axis Bank. The government currently holds these through the SUUTI, which was carved out of the UTI in 1999 at the peak of the UTI crisis. The government is likely to conclude the transaction during the month of May 2020. On the buying side, the mutual funds and LIC are expected to participate. Like most such similar deals, it is expected to be executed at a marginal discount of 2-3% on the underlying trading price on the transaction date. This will be part of the government’s larger plan to raise Rs.210,000 crore through divestment in state-run companies. It has already sold its entire stake in L&T and Rs.90,000 crore is expected to be raised from a 10% stake sale in LIC.