The state-run Investment Corporation of Bangladesh (ICB) is looking for buyers to sell Tk 3 billion worth of its holdings in listed securities for the purpose of reinvestment in the stock market.
If buyers are available, share transactions will be executed in the block market to avoid the impact of sell pressure on the main market.
"The Corporation will be able to support the market with the fund to be realised through share sales," said ICB Managing Director Md. Abul Hossain.
"The ICB will sell only the shares that will ensure capital gains."
Mr Hossain, however, admitted that it would be difficult to transact the large volume of shares, given the present market situation.
The Corporation has investments amounting to around Tk 120 billion in listed companies.
Of the fund, one-third or Tk 40 billion is in banks. The remaining money has been injected in other sectors, such as pharmaceuticals, engineering and power.
Market prices of many bank stocks held by the ICB are now below the cost prices in the declining market.
Of the 35 listed banks, shares of eight lenders were below the face value of Tk 10 on the Dhaka Stock Exchange (DSE) on Wednesday. The 27 other bank stocks were trading at Tk 10.4 to Tk 59.10 on Wednesday.
The ICB will utilise one third of the fund to be realised to repay Term Deposit Receipts (TDR) and the remaining two-third for reinvestment.
The Corporation's liabilities will be reduced following the repayment of TDRs against which interest is being charged by different commercial banks, said Mr Hossain.
On the reinvestment strategy, he said the department concerned at the Corporation would make a list of the securities based on a thorough analysis.
The list will be finalised based on a further scrutiny of the fundamental strength of the companies, the Corporation chief added.
In June, the ICB offloaded its entire holdings of Islami Bank for Tk 1.09 billion.
Transactions were executed in the block board of the Dhaka bourse.
A portion of the fund was utilised to repay TDRs while the rest was re-injected into the capital market.
Earlier, the ICB sought Tk 50 billion at minimum interest rate from the government to repay TDRs and to inject money into the capital market.
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