Calcutta, Oct. 20: Foreign institutional investors (FII) have increased their stake in ING Vysya Bank by a whopping 12 per cent over the last three months. FIIs now hold 18.13 per cent in the bank, as against 6.02 per cent three months ago.
During the quarter ended September 30, the erstwhile promoters of the bank, G. Mallikarjuna Rao and his investment companies, sold around 6 per cent of the bank’s shares in the market.
Most of what he and his firms sold appears to have been scooped up by foreign institutions. Rao and his investment companies — widely referred to as the GMR group — now hold 69,312 shares, or a paltry 0.3 per cent of the bank’s equity capital.
Banque Bruxells Lambert of the ING Group of the Netherlands controls the bank. It owns 43.99 per cent of the bank’s shares through two investment companies based in Mauritius.
The foreign institutions that have large holdings in the bank are Emerging Markets Management, Goldman Sachs Investment (Mauritius), BNP Paribas (South Asia) and Government of Singapore Investment Corporation. In addition, International Finance Corporation (IFC) holds 5 per cent in the bank.
Emerging Markets Management holds 3 per cent of the bank’s shares followed by Government of Singapore Investment Corporation and Monetary Authority of Singapore, which hold 2.36 per cent and 1.61 per cent respectively. Goldman Sachs owns 1.5 per cent of the bank’s shares. Indian mutual funds have a combined holding of 5.29 per cent, marginally lower than three months ago. Unit Trust of India, Templeton and Birla Sun Life own more than 1 per cent apiece.
The ING Group acquired 23.99 per cent (or 54.36 lakh shares) from the GMR group last year at Rs 626.92 apiece. The ING Vysya Bank stock is currently trading at around Rs 475 — or a discount of 24-odd per cent to ING’s acquisition cost.
Public holding in the bank is pegged at a shade below 25 per cent, which includes 5 per cent held by Dilip Ramniklal Mehta, an NRI.