HSBC ends UTI dream

HSBC closes a chapter on its Indian ambitions with the sale of a stake in UTI Bank.
HSBC raised $145 million late last week after selling a 7.19% stake in UTI Bank, the banking subsidiary of IndiaÆs largest mutual fund, the Unit Trust of India. The stake was sold to a small handful of funds including Fidelity Funds Mauritius, Crown Capital and Master Trust Bank.

HSBC divested the shares at an average price of Rs.318.60 each versus an acquisition price of Rs90 from private equity fund Actis then CDC Capital Partners. As such the bank has booked a tidy profit in excess of $100 million on the stake, but is unlikely to be thrilled with its success given the history behind the deal.

It will now own 4.99% in UTI Bank,...
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