Our country’s best mutual fund house ICICI Prudential AMC has recently sold about 4.61 million shares of ICICI Securities to supposedly bail out the group company’s IPO (Initial Public Offering).
ICICI Prudential Mutual Fund has sold a portion (4.61 million) of the I-Sec shares in secondary market transactions last week after the SEBI directed the fund house to compensate investors in MF schemes that partook in the issue.
Out of the total 640 crore Rupees invested to obtain 12.31 million worth ICICI Securities stake, bids worth 400 crore Rupees was invested on the first day of the IPO, while 240 crore Rupees was placed on the last day.
The additional bids of 240 crore Rupees that were made on the day three of the issue were the ones that were sold by ICICI Prudential.
The investigation by the Securities and Exchange Board of India revealed that the country’s largest mutual fund house’s bids on the last day of the IPO were made to guarantee the issue succeeded.
Hence, SEBI directed India’s best mutual fund house ICICI Prudential AMC to repay 240 crore Rupees (for 4.62 million shares) to investors in the five schemes that participated in the issue along with 15 percent annual interest from the allotment date to the actual payment date.
In the Market Regulator’s letter to the ICICI Prudential Mutual Fund, it stated that it is hard to understand what modifications in basics of I-Sec during the bidding period could have made the fund house to make extra bids of 240 crore Rupees on the last day of the IPO, in spite of already making a fairly large bid of 400 crore Rupees on the first day.
“We have complied with SEBI’s advice and addressed the matter to their satisfaction,” said ICICI Prudential Mutual Fund after confirming the sale of ICICI Securities shares, reported The Economic Times.
An official spokesperson for the best mutual fund house ICICI Prudential AMC confirmed that the I-Sec shares had been sold in accordance with the Market Regulator’s instructions, according to Money Control.
The post India’s Best Mutual Fund House ICICI Prudential Sells 4.61 Million Worth I-Sec Shares appeared first on OWLT Market.
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