Cumulative investments in IPOs profitable: Centurion Bank of Punjab
The bank made this clarification following reports that it had incurred losses by investing in REPL's IPO. Gainers: BSE Group A | BSE Group B1| BSE Group B2 | NSE
By PTI |
MUMBAI: Private-sector lender Centurion Bank of Punjab on Thursday said its cumulative investments in initial public offerings have been profitable and the bank would not go by the day-to-day stock market volatility.
The bank today came out with this clarification in the backdrop of reports that CBoP had incurred losses of up to Rs 26 crore by investing in Reliance Power's IPO.
"We invest in IPOs as a part of our normal treasury operations and we also have invested in the Reliance Power IPO. Till date, our cumulative investments in IPOs, including Reliance Power IPO, have delivered profits," CBoP's Country Treasurer Tarini Vaidya told reporters.
According to some reports, the bank was reportedly allotted 26 lakh shares of Reliance Power and made losses in the range of Rs 20-26 crore, following the market crash earlier this week.
While retail investors witnessed a loss of Rs 475 crore on the first day of R-Power's listing, the loss-margin was bigger for Foreign Institutional Investors (FIIs), which lost around Rs 800 crore when the scrip closed at Rs 372.5 per cent share as against the issue price of Rs 450.
The bank today came out with this clarification in the backdrop of reports that CBoP had incurred losses of up to Rs 26 crore by investing in Reliance Power's IPO.
"We invest in IPOs as a part of our normal treasury operations and we also have invested in the Reliance Power IPO. Till date, our cumulative investments in IPOs, including Reliance Power IPO, have delivered profits," CBoP's Country Treasurer Tarini Vaidya told reporters.
According to some reports, the bank was reportedly allotted 26 lakh shares of Reliance Power and made losses in the range of Rs 20-26 crore, following the market crash earlier this week.
While retail investors witnessed a loss of Rs 475 crore on the first day of R-Power's listing, the loss-margin was bigger for Foreign Institutional Investors (FIIs), which lost around Rs 800 crore when the scrip closed at Rs 372.5 per cent share as against the issue price of Rs 450.
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Asked whether the bank would continue to invest in stock markets, given the prevailing high volatility, Vaidya said the bank would observe the movements while considering investments on the bourses. "Our view does change according to the change in global market conditions and its impact on the Indian market," she said.
Reacting to the reports, CBoP's spokesperson said the bank has been investing in IPOs with a long-term investment perspective. There was no need for worry, the spokesperson said, adding that "the bank is confident of delivering results in line with market expectations for the March quarter and (that) for the full financial year."
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