Actis, formerly CDC Capital Partners, has emerged a winner in $67.2 million deal with HSBC "" whereby the private equity investor sold 14.62 per cent holding in UTI Bank to the foreign bank. | |
| In addition to the cash consideration for the stake sale, CDC has also gained another $2.5 million in terms of dividend declared by UTI Bank for 2003-04. |
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| As the stakes exchanged hands only last night, HSBC loses out on the dividend payment, said HSBC India deputy CEO Naina Lal Kidwai. The book closure for dividend payout is June 1. |
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| Today, Government of Singapore bought 10.8 lakh UTI Bank shares in a block deal from Lloyd George at Rs 117.5 a share on the Bombay Stock Exchange. |
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| Now that the Reserve Bank of India (RBI) has denied HSBC from picking up the entire CDC holding in UTI Bank, the private equity investor can sell the balance 5.3 per cent at a higher price. |
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| Against the agreed price at which CDC sold 14.62 per cent stake to HSBC, UTI Bank scrip price has risen to the current Rs 122, reflecting an appreciation of 35 per cent since the agreement was signed in December 2003. |
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| What's more CDC has already made a hefty profit of $42 million for the sale of the 14.62 per cent stake in UTI Bank. The future sale of 5.3 per cent would be made at a higher price since there seem to be many takers for a stake in the private sector bank. |
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| The Life Insurance Corporation of India (LIC), founder member of the private sector bank, holds 13.5 per cent, second to Unit Trust of India's (UTI) 33.36 per cent holding in its own banking arm. |
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| The General Insurance Corporation of India (GIC) holds 7.06 per cent. Mutual funds hold 3.33 per cent, with Templeton MF A/c Franklin India Prima Fund accounting for 1.04 per cent and Wasatch advisors INC A/C, Wasatch Core Growth Fund holding 1.02 per cent. |
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| Foreign institutional investors have 14.60 per cent holding in UTI Bank, which includes Citicorp Banking Corp's four per cent. |
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