Citi Picked Tata Engg Holding For Clients

Citibank NA, which has picked up a 7.47 per cent stake in Tata Engineering has done so on behalf of some of its clients.

The multinational bank participated in Telco's Rs 978-crore rights as a custodian for various domestic mutual funds and foreign institutional investors. It has not purchased the 7.47 per cent in Telco on its own account.

However, Citibank has not disclosed the names of the investors on whose behalf it had picked up such a large chunk of Telco shares.

Telco, in a recent filing with the Bombay Stock Exchange, where it gave a breakdown of its shareholding pattern, had listed Citibank NA as a holder of 7.47 per cent equity stake. Telco's filing was signed by its company secretary, H K Sethna.

Telco's mega rights issue of Rs 978 crore went through smoothly, with only global depository receipts holders and a couple of financial institutions not participating in the issue.

The Tatas, the promoters of Telco, subscribed to most of the unsubscribed portion of the rights issue, and are expected to increase their shareholding in the auto major to over 30 per cent following full conversion of the rights issue.

Before the rights issue, the Tata stake in the company was a little over 25 per cent.