The Hindu Business Line : Catholic Syrian share price surges

The share price of Catholic Syrian Bank has doubled in informal transactions during the past couple of months. "The share price which was hovering around Rs 60 a couple of months ago had firmed up to Rs 80 last month and is currently quoting around Rs 120," an employee of the bank, who recently sold his stake, told Business Line. The bank's shares are not listed on any of the stock exchanges. "Though substantial increase in the share price has come to the notice of the bank, this has not been accompanied by any significant increase in share transfer requests. We are also keeping a close watch and there is not any likelihood of individual acquisitions crossing the five per cent threshold limit," Mr N.R. Achan, Chairman of the bank, clarified.

The market rumour is that Mr T.S. Anantharaman, former Chairman of Peninsular Capital Markets, is on a buying spree. Mr Anantharaman had sold Peninsular Capital to Motilal Oswal, and is now reported to be buying on behalf of the top share broking company.

Denies interest

Denying any undue interest in the bank in the recent past, Mr Anantharaman said: "I have been a value investor in the Catholic Syrian Bank shares for the past four-five years, when the prices were ruling low. I have been a value buyer right from the time when share prices ruled at Rs 25 - 50. I have made my purchases and I do not see significant value at the current levels of Rs 120. I am not a buyer in the current market price and I am not acting as a front for any other corporate entity, including Motilal Oswal."

Bank officials also confirmed that Mr Anantharaman has been a steady investor in the bank's shares in the past. However, sources pointed out that there is still time for all recent transactions in the bank's shares to come up for transfer.

Mr Achan was of the opinion that there was still value in the buy even at current prices.

He pointed out that the bank has a very low capital base of over one crore shares with a total face value of Rs 10.70 crore. The bank had total capital and reserves of Rs 215.58 crore at the end of last year. It posted a net profit of Rs 6.14 crore and we are equally confident of posting better results this year, Mr Achan said.

But the investors are still unwilling to discount take-over rumours with share prices continuing to hold firm.

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