We want the regulator to consider returning at least below par value, may be Rs 6 or 8 per share, said an investor, who had purchased shares a week before RBI decided to impose moratorium on GTB.
The investors group in Hyderabad is planning to meet on Sunday to discuss the future course of action. They propose to submit their objections to the RBI before August 7, as per the latters order. We will first represent our case to the RBI before we decide to take the legal recourse, another investor told FE. The investors group is said to be in constant touch with Mr Ramesh Gelli, the promoter, former Chairman, and still a major shareholder of GTB. Mr Gelli is also expected to attend the meeting, one of the investors said. However, he refused to reveal the venue of the meeting.
Mr PC Shrimal, former president of the Hyderabad Stock Exchange (HSE) and a senior stockbroker feels that the shareholders must get the residual value of their shares.
The RBI must take the responsibility of the shareholders and protect their interest on par with depositors, he opined.
Another shareholder said: If the Section 45 (2) does not exist in the Banking Regulation Act, the deal would have been closed only after taking the shareholders approval. Hence, the regulator (RBI) has to come to the rescue of the shareholders and protect their interests, he added.
Further, to support their argument, the group of investors say that New Bridge Capital - which made a bid for GTB and was rejected by the RBI - has put a value of $350 million. And, they proposed to infuse $200 million initially. This amounts to about 60 per cent of the total value of GTB. So, this substantiates the inherent worth of GTB.
Hence, the investors argue that the regulator must consider this aspect, when they go for a valuation of the bank.