Mutual funds raised stakes in these 10 stocks

NEW DELHI: As many as 10 stocks were common on the shopping lists of both domestic and foreign institutional investors during the September quarter.

Shareholding data showed foreign portfolio investors (FPIs) and local mutual funds raised stakes by at least 100 basis points in each of these stocks during the three-month period. These stake buys mostly happened via QIPs or bulk deals with existing investors.

The combined holdings of the two institutional groups in these stocks rose by up to 21 percentage points sequentially, data compiled from corporate database AceEquity showed.

Six of these stocks delivered single-digit returns since June 30 while the rest four climbed up to 116 per cent.

Topping the list is Bandhan Bank, in which the two institutional categories raised stake by a combined 20.95 percentage points during the quarter. MF holding on the counter rose by 322 basis points sequentially to 4.92 per cent and FPI holding by 17.73 percentage points to 32.24 per cent.

Institutional investors lapped up the Rs 10,600 crore shares sold by the bank’s promoter, Bandhan Financial Holdings, to meet RBI’s ownership rules. The stock is down 7 per cent since June 30.

In the case of ESL (erstwhile Essel Propack), mutual fund holding rose by 10.28 percentage points to 11.35 per cent while FPI stake rose by 9.35 percentage points to 14.25 per cent.

US-based private equity major Blackstone, which owned 75 per cent stake in promoter entity Epsilon BidCo, sold about 23 per cent stake in the speciality packaging company to 20 marquee funds, including Morgan Stanley, Neuberger Berman, Franklin Templeton and Macquarie, among others, during the quarter,

The combined stake bought by the two institutional categories in ESL stood at 19.63 per cent, which helped the stock to climb 45 per cent since June 30.

Amber Enterprises, which raised Rs 400 crore via a qualified institutional placement (QIP) during the quarter, saw FPIs raise stake by 12.10 percentage points QoQ to 25.39 per cent. MF holding rose by 294 basis points to 9.47 per cent, which resulted in a 15.04 per cent sequential rise in combined holding by the two investor categories. The stock is up 53 per cent since June 30.

Phoenix Mills raised Rs 1,100 crore via a QIP during the quarter. Besides, two promoter entities sold 7.28 per cent in the company for Rs 833 crore during the period under purview. Mutual funds and FPIs lapped up those shares with both hands. MFs increased their holding in the company by 471 basis points to 14.87 per cent and FPIs by 817 basis points to 33.91 per cent. The stock is down 4 per cent since June 30.

In case of GMM Pfaudler, MFs and FPIs lapped up its shares in an offer for sale (OFS) that was offered at a 33 per cent discount to the then prevailing price. FPI holding in the company was less than 1 per cent (at 0.87 per cent) at the end of June quarter. FPIs and MFs raised their combined holding by 9.81 per cent during the July-September period.

B2B e-commerce company Indiamart Intermesh posted a two-fold jump in consolidated profit at Rs 76.4 crore for the June quarter. The FPI buying probably helped the 115 per cent rally in the stock during the quarter. FPIs and MFs raised their stake in this company by a combined 7.70 per cent during the September quarter.

Mindtree, PI Industries, Max Financial Services and Glenmark Pharmaceuticals were other companies where FPIs and MFs both raised stakes by at least 100 basis points. Their combined holdings in these stocks rose by up to 558 basis points during the three-month period.


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