Actis sells 5% stake in UTI Bank to FIIs

Actis has sold off its five per cent stake in UTI Bank to foreign institutional investors for Rs 130 per share.

The balance stake of nearly five per cent was sold through CLSA, a brokerage and investment banking services firm, to FIIs at a price of around Rs 130 per share, market sources said in Mumbai.

Actis, which has been carved out of the United Kingdom-based CDC, had signed an agreement with the Hong Kong and Shanghai Banking Corporation to sell about 20 per cent stake in UTI Bank in two tranches, at Rs 90 per share.

However, RBI allowed HSBC to pick up only 14.6 per cent stake and hence Actis was free to decide on the strategy for their balance holding in the private sector bank.

The deal with HSBC was concluded early last month.

Two Actis nominee directors Paul Fletcher and Donald Peck on the board of UTI Bank had already resigned effective June 7 following RBI's nod to HSBC to pick up the 14.6 per cent stake.