The 52-week high of the scrip is Rs 337. When the GDR roadshows commenced on September 20, the stock stood at Rs 263.25 at the local markets and a premium of 5 to 7 per cent was expected on that price. Over the last week, the stock has lost about Rs 23 on both the Bombay Stock Exchange and the National Stock Exchange.
The stock, in the post-GDR era, continues to face rough weather for, while the stock prior to the date of its GDR pricing had lost Rs 12.50 over the previous week's close, on a single day's trading session on October 4 (Friday last) on the BSE, the scrip lost Rs 10.50 and finally closed at Rs 228.50.
Marketmen explained the slide in SBI's post-GDR pricing as lack of FII interest. The bank's decision to retain the total FII holding within the 20 per cent limit seems to have gone against foreign players who are bullish on the scrip, they added.
Doubts, however, continue to be raised over the method in which the premium was calculated and the timing of the issue in a weak GDR market. Sharebrokers and market analysts feel that it was the saturation of the 20 per cent ceiling on foreign holdings in the SBI, (after the GDR) which prompted FIIs to stay away from the stock over a short term.
On the day of the GDR pricing, the scrip, which had been witnessing sustained hammering on both the bourses by a section of the FIIs, closed at Rs 239 on BSE and Rs 239.65 on NSE.
Though bank officials were quoted in newspapers as saying that since the FII holding has been kept below 20 per cent there would be some manoeuverability for trading of shares by the FIIs, the market seemed to have thought otherwise.
According to them marketmen, about 15 million shares of the SBI were sold in the market over the past two weeks. They added the GDR pricing of the SBI scrip also triggered FII selling as the buffer support lent by some other FIIs (close to the bank) was absent.
