The scramble for Bank of India shares buoyed by foreign and domestic institutional investors' purchases has pushed up the stock by 30 per cent since its listing last Monday. However, the bank is yet to despatch share certificates to over two lakh investors, say brokers.

The BOI shares, offered at a price of Rs 45 per share and listed on the Bombay Stock Exchange at Rs 50.25, closed on Friday at Rs 73.25. On the NSE, the stock closed on Friday at Rs 73.85, a jump of 15.56 per cent over its listing price of Rs 60.35 on Wednesday.

``Though the bank authorities took the lead to ensure that the small shareholders get confirmed allotment, statistics reveal that only 30 per cent of the shareholders have received the certificates,'' said a BSE member.``At least 20 per cent of the shares traded over the past 4 trading sessions on BSE and 2 sessions on NSE will revert back for auction, reflecting the nature of business conducted at this counter,'' he added. On BSE 74.42 lakh shares are reported to have changed hands during the past four days or an average of 18.60 lakh shares a day. On NSE over one crore shares are said to have changed hands.

According to market sources, during the past three sessions, DSP Merrill Lynch is understood to have picked up about 12-13 lakh shares; UBS Securities (stockbroking arm of United Bank of Switzerland) some five lakh shares; WI Carr around three lakh shares and Jardine Fleming (4 lakh shares). Some local funds are said to have picked up about 30 per cent of the total shares traded.

The rush seems to have followed BOI's former-chairman G Kathuria's announcement of 56 per cent higher net profit (provisional) for 1996-97 and lower NPAs. These figures were announced just before the stock was listed on the bourses. Market intermediaries feel the offer price for BOI stock of Rs 45 was ``rather cheap'' when compared to the performance for 1996-97. Even the bank is contemplating to tap the global markets during the current year with a GDR issue.

``We wanted to route our sales through the C group of BSE which offers an added advantage of more than 15 days, to settle the trade, however, these FII's were more keen on going through the clearing house,'' said the director of a leading brokerage firm. ``However, they declined our offer,'' he added.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.