Karur Vysya Bank shares rise 3%, hit 52-week high as SBI MF acquires 1.5% stake

Shares of Karur Vysya Bank gained 3.3 percent, hitting a fresh 52-week high in early trade. On December 12, SBI Mutual Fund purchased 1.2 crore equity shares via open market transactions.

The shares bought were equivalent to 1.5 percent of paid-up equity, in the bank at a price of Rs 162 per share, amounting to Rs 194.4 crore. The sellers could not be determined by Moneycontrol.com.

At 9.20 am, shares of the Karur Vysya Bank were trading at Rs 169.25, higher by 2.6 percent compared to the closing price of the previous session.

In November, the Reserve Bank of India gave its approval to SBI Mutual Fund for acquiring an aggregate holding of up to 9.99 percent in the bank.

If SBI MF fails to acquire major shareholding within one year from the date of RBI’s letter, this approval shall stand cancelled.

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“Further, if the aggregate holding falls below 5 percent, prior approval of the RBI will be required to increase it to 5 percent or more of the paid-up share capital,” said the lender in a regulatory filing.

The promoter holding remained unchanged for the September quarter at 2.2 percent, while FIIs and DIIs have a shareholding of 18.1 percent and 32.3 percent in the bank.

Among the DIIs, mutual funds hold 24.69 percent. UTI Banking and Financial Services Fund Growth and SBI Banking & Financial Services Regular Growth have the largest holding in the lender across mutual funds, holding 3.74 percent and 3.59 percent.

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