5 FIIs pick up 34% in DCB in 2 weeks

ABN Amro Bank, Citigroup Global Markets, Macquarie Bank, Fidelity and Morgan Stanley have picked up a combined 34 per cent stake in Development Credit Bank (DCB) from the open market over two weeks.

The foreign institutional investors (FIIs) scooped the stakes in DCB in 13 trading sessions, from the listing of the bank's stock on October 27 to November 14.

According to data from the twin Mumbai exchanges, Morgan Stanley topped the list with 9.94 million shares, representing 12.96 per cent stake. Fidelity was ranked the second in the chart with acquisition of 6 million or 7.88 per cent stake in DCB.

The two were followed by ABN Amro Bank with 2.28 million shares (2.99 per cent), Citigroup 6.4 million ( 8.47 per cent) and Macquarie Bank 1.2 million (1.57 per cent).

The FII-led frenzied buying helped the DCB stock gain 100 per cent over the issue price of Rs 26. The stock on Wednesday closed at Rs 54.20 on the BSE, 1.90 per cent lower than yesterday's close of Rs 55.25.

The DCB stock, on October 27, listed on the BSE at Rs 35.35, at nearly 36 per cent premium over the issue price of Rs 26.

The paid-up equity share capital of the bank is Rs 147.63 crore. The bank raised Rs 186 crore through its initial public offering. The foreign investors had picked up 10 per cent stake in the bank's maiden trading session.