US financial services giant Lehman Brothers is aggressively selling shares in several emerging markets including India in order to mitigate the losses it incurred in the world's largest economy in credit-related write downs.
“They have been heavily selling stocks in almost all emerging markets including India. At present, it seems like they are liquidating their mid-cap portfolio in India,” said a dealer working with a Mumbai-based institutional broking firm.
However, Lehman Brothers did not reply to an e-mailed questionnaire sent to the company's Asia communication office.
According to bulk and block deals reported in the Bombay Stock Exchange, in a one-month period ending August 27, Lehman Brothers has sold shares worth Rs 542.5 crore. It has offloaded chunks of shares in companies like NIIT, Cranes Soft and Amtek Auto among others. The Wall Street Bank is understood to have offloaded shares of several blue chip metal companies as well.
Sources close to Lehman said the company has sold its entire holding in four mid cap stocks during the past two weeks. Duestche Bank was one of the foreign banks, which bought a major part Lehman’s mid-cap portfolio in India, said investment banking sources.As per the information available on the securities and exchange board of India website, foreign institutional investors have sold Indian shares worth a net Rs 28,657.40 crore in the calendar year 2008 so far.
According to recent media reports, the loss-stricken bank is planning to sell its fund management business run under Neuberger Berman — a firm it acquired four years ago. Lehman Brothers has now raised more than $13 billion in capital after taking a $8 billion hit in credit-related write downs in the US.