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June 8, 2001
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Money > Business Headlines > Report June 8, 2001 |
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UTI holding value in HFCL, Zee erodes by Rs 16.38 billionSubhomoy Bhattacharjee The total value of Unit Trust of India's holdings in HFCL and Zee Telefilms has been eroded by over Rs 16.38 billion in the last three months, according to figures given by the finance ministry. In a letter written to BJP MP Kirit Somaiya by Finance Minister Yashwant Sinha the total cost of acquisition of the shares of the two companies by the mutual fund behemoth was Rs 19.29 billion. But after the fluctuations in the bourses due to the stock scam the market value of the shares of the two scrips held by UTI has sharply plunged to Rs 2.90 billion as on April 20. The market value of UTIs' holding in Zee Telefilms is Rs 1.63 billion as on April 20 against the cost of buying the scrip at Rs 8.62 billion, while the market value of HFCL's holding by the trust is Rs 1.27 billion (bought at Rs 10.67 billion). However the ministry says during the period from July 1, 2000 to April 20, 2001 UTI has booked a loss of only Rs 996 million for the Zee Telefilms, while it has booked a profit of Rs 3.14 billion on the HFCL account. The figures given by the finance ministry in the letter has buttressed the point made by Securities and Exchange Board of India in its interim report. Sebi has said that while mutual funds reduced their holdings in technology stocks from February 2000, but "some institutions particularly UTI has been maintaining their holdings in these scrips". The report adds that the behaviour by UTI has actually given a "benchmarking to the market prices of the scrips like HFCL, Zee, DSQ Software, Global Tele etc". While UTI has claimed that it has actually made an overall profit during the period the data show that the value of its holding in several scrips have been substantially downgraded. Further while the public sector mutual fund has claimed that it has reduced its exposure to these scrips, often referred to as K-10 stocks, the share holding pattern suggests otherwise. Powered by YOU MAY ALSO WANT TO READ:
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