The Hindu Business Line : Actis sells UTI Bank residual stake in open market

ACTIS, the investment manager carved out of UK private investor CDC, today sold about 5 per cent equity stake or a little over a crore shares of UTI Bank to a clutch of foreign funds.

A stock market source said while US-based T Rowe Price bought about 45 lakh shares, Morgan Stanley bought 35 lakh shares and Capital International purchased about 25 lakh shares.

Actis sold the stock, comprising about 1.05 crore UTI Bank shares, at an average price of Rs 130 per share working out to a deal size of about Rs 137 crore. Foreign broking firm CLSA, acting on behalf of the foreign institutional investors, purchased the stock, the source said. When contacted, an Actis spokesperson declined to comment. Actis had first invested in UTI Bank in 2001, when it bought 26 per cent ownership in the private bank for about Rs 158 crore or Rs 34 per share. Subsequent equity dilutions by the bank brought down that holding to a little over 20 per cent.

Last December, Actis sold 14.6 per cent stake in UTI Bank to HSBC at Rs 90 per share or a total of over Rs 300 crore ($ 67 million), and agreed to sell the residual 5 per cent later. However, HSBC's plan to buy the residual stake came unstuck when the RBI refused it permission.

Today Actis sold the residual stake in the open market at a price that is Rs 40 more than what it got from HSBC.

UTI Bank shares closed at Rs 126.30 on the BSE.

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