Sbi

The market favourite lost 7.60 per cent during the week.

The reason is the sustained hammering by Jardine Fleming and Morgan Stanley who failed to get the mandate for the GDR issue.

Domestic financial institutions were unable to support the scrip due to the funds crunch.

The fact that the foreign insitutional investor holding cant exceed 20 per cent (both domestic and GDR put together) of the equity did not help the matter either.

The foreign institutional investors started selling in a desperate attempt to bring down the prices so that GDRs can be picked up cheaply.

Despite the efforts of the foreign institutional investors, (mainly Jardine and Morgan), the bank managed to get 5.12 per cent premium.

 

The total issue size was restricted to $ 369.98 million so that foreign institutional investor holding does not cross the limit of 20 per cent.