Nearly half a dozen fund houses, including foreign institutional investors (FIIs) and mutual funds, have offloaded in South Indian Bank (SIB). Those who cashed out from the Kerala-based bank include the India Fund Inc, a diversified India-focused fund administered by Blackstone Advisors, the $ 4 billion Sanlam Asset Management Ireland and private equity major Voyager Fund, which has presence in India, China, Middle East and Africa.
SIB is always a preferred stock for various fund houses since no promoters holding make it attractive buy and often seen as a potential takeover target, market sources said.
According to information available with FE, India Fund Inc has cashed out its entire investment in SIB between March-end and June-end. The fund was holding 28.44 lakh shares aggregating to 2.52% of the paid up equity capital of SIB. Another major investor who cashed out its holding in SIB was Birla Sun Life Insurance which sold its entire 2.29% stake. Templeton Mutual Fund also sold its 17.96 lakh shares in SIB aggregating to 1.59% stake in the private sector lender. Other major investors who cashed out their holding in SIB were Sanlam Asset Management Ireland (1.4%), Franklin Templeton Mutual Fund (1.19%) and Voyager Fund Mauritius Ltd (1.16%).
According to market sources all the fund houses have liquidated their holding by selling in the secondary market. ?These funds were holding SIB stake for a few quarters and they decided to book profit. All of them have sold the stake in the open market in whole or in tranches,? a trader with a brokerage house told FE.