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GTB scrip touches 52-week high

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Our Regional Bureau Hyderabad
Last Updated : Jan 28 2013 | 2:41 AM IST
 The share deal, which was reported at 10.15 am, also saw the scrip touching an intra-day as well as 52-week high of Rs 29.50 before closing at Rs 28.10 on BSE. On NSE, the scrip went up to touch Rs 30.20 and closed at Rs 28.40. The scrip appreciated about 30 per cent in the last two trading sessions.

 While the scrip has been witnessing buying interest on the expectation of positive developments, the GTB managing director, Sudhakar Gande, when contacted, told Business Standard that the discussions were at an advanced stage and the deal would be be finalised in another 4 to 6 weeks.

 It may be recalled that the bank recently initiated talks with the Development Bank of Singapore (DBS) and the Commonwealth Bank of Australia to sell a 49 per cent stake to them, while putting on hold the talks with Newbridge Capital, which had initially shown interest to pick up stake in GTB.

 With a view to infusing the additional capital, the bank has decided to seek shareholders' nod to increase the authorised share capital of the bank to Rs 650 crore from Rs 350 crore.The bank currently has a paid-up capital of Rs 121.36 crore, and accumulated losses of Rs 265 crore as on March 31, 2003.

 On the block deal for 2 million odd shares that took place on Thursday, Gande said that he was not aware of who sold and who bought, and the details would be available by Monday. However, market analysts, watching the development in the scrip ,say that there are two possibilities.

 The first possibility would be the sale by International Finance Corporation, which had a holding of 6.62 per cent stake in GTB as on September 30.

 IFC, which was holding 10.38 per cent stake in GTB prior to June 30, 2003, has been offloading the stock in the recent past whenever there is a price increase. It sold 31,73,016 shares (2.61%) of GTB in the market during August 13-22 this year. In the subsequent transaction, it offloaded another one per cent holding.

 The other possibility would be that one of the market players, who acquired the bank stock in the recent past, might have offloaded to the entities related to the prospective strategic investors through today's block deal. GTB scrip today witnessed a volume of 35.94 lakh equity shares on BSE ( including the block deal) and 28.65 lakh equity shares on NSE.

  

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First Published: Dec 05 2003 | 12:00 AM IST

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