INSTITUTIONAL INVESTORS MINT MONEY IN BANK QIPs
Institutional investors mint money in bank QIPs
The rally in banking stocks since the start of calendar year 2017 (CY17) has brought cheer to qualified institutional buyers (QIBs), as shares of most banks have outperformed the markets and are trading at a premium to their respective qualified institutional placement (QIP) issue prices.
Thus far in the CY17, investors in banks like State Bank of India (SBI), YES Bank, Kotak Mahindra Bank, Lakshmi Vilas Bank and DCB Bank have rallied up to 21% over their respective QIP issue prices. The BSE Sensex, by comparison, has recorded an average gain of 9% during this period.
Hindalco Industries, Minda Industries, Deepak Nitrite, Premier Explosives, Brigade Enterprises, Delta Corp, Ramkrishna Forgings, Sagar Cements and Veer Energy Infrastructure are the other stocks that are trading above their respective QIP issue prices, and have beaten the benchmark index.
Of the 18 QIPs that raised Rs 34,349 crore in CY17, stocks of 16 are trading above their QIP issue price. While Federal Bank at Rs 115 is nearing its QIP issue price of Rs 116, United Bank of India – the top loser in this pack – is quoting 16% lower against QIP issue price of Rs 23.22 at Rs 19.50 levels.
Courtesy: See More @ http://bit.ly/2wcxaSB
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