June 27, 2012 / 12:52 PM / 5 years ago

HSBC selling stakes in Axis Bank, Yes Bank

A labourer works on the sign of a bank building in the western Indian city of Ahmedabad November 26, 2010. REUTERS/Amit Dave/Files

REUTERS - UK lender HSBC (HSBA.L) on Wednesday offered its entire stakes in India’s Axis Bank (AXBK.NS) and Yes Bank (YESB.NS) through share sales worth up to 24.5 billion rupees, according to a term sheet obtained by Reuters.

HSBC offered 19.6 million shares in Axis Bank for 950.9-970.9 rupees each and 16.8 million shares in Yes Bank for 318.1-324.8 rupees per share through its Mauritius subsidiary, the term sheet said.

Shares in both banks were being sold through HSBC’s Mauritius subsidiary at discounts of 3 to 5 percent to their closing price on Wednesday, the term sheet said.

Goldman Sachs (GS.N) and HSBC are joint bookrunners for the sales.

Global institutional investors have been cashing in their holdings in Indian financial services firms.

Earlier this year, Citigroup (C.N) sold its stake in top Indian mortgage lender Housing Development Finance Corp (HDFC.NS) for $1.9 billion, while U.S. private equity firm Warburg Pincus sold its stake in Kotak Mahindra Bank Ltd (KTKM.NS) to raise about $274 million.

Reporting by Fiona Lau, Daniel Stanton and Abhishek Vishnoi; Editing by Tony Munroe and Hans-Juergen Peters

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