Financial Daily from THE HINDU group of publications
Thursday, Mar 18, 2004
Financial Daily from THE HINDU group of publications Thursday, Mar 18, 2004 |
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Markets
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Stock Markets Money & Banking - Stocks Federal Bank sizzles on block deal Jayanta Mallick
Kolkata , March 17 THE Federal Bank stock provided the lead for the bank counters today in their upward move. Strong demand pushed up the stock 13.3 per cent. HDFC Mutual Fund today picked up Federal Bank 3.50 lakh shares at a weighted average price of Rs 310.10 each on the NSE. It is understood that Reliance Capital Trustee Co Ltd was the seller, which exited the bank after the deal. The deal represents 1.58 per cent of the bank's total paid-up capital. The Federal Bank does not have a promoter, as such, but ICICI Bank is the single largest stakeholder with 20.44 per cent voting rights in its control. The public holding as on December 31, 2003 was placed at 52.34 per cent. A number of private corporate bodies (including Kolkata-based AKG Finvest and Uno Metals jointly holding 4.74 per cent) held 14.64 per cent. The Federal Bank stock closed at Rs 309.8 (Rs 274.75), after touching a day's high at Rs 327.5 on the BSE with traded quantity going up to 9.98 lakh shares from yesterday's quantity of just 79,071 shares. On the NSE, it had a volume of 29.8 lakh shares (21.17 per cent was up for delivery) and touched its all time high at Rs 328.70. According to Mr Devarsh Vakil of Anagram Stockbroking, today it traded at five times its trailing 12 months EPS of Rs 63. Its book value per share has increased from Rs 244 to Rs 296 in the first 9 months of 2003-04. Banks with no specific promoter holding are generally prone to attract creeping acquisition possibilities. Hence, price elasticity increases with sudden surge in demand when bulk deals take place. Karnataka Bank was up six per cent and the volumes rose with 56,700 shares changed hands through block deals on the NSE. Of the traded shares, 23.27 per cent was marked for delivery. Other private bank stocks such as ICICI Bank and HDFC Bank, and the sector major SBI, also saw volume and/or price increases in varying degrees.
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