In falling markets, consolidation is the buzzword for big investors

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Mumbai, Mar 24: It’s not only the promoters of the companies but investors from the financial institutions and foreign institutional investors (FIIs) too who are taking advantage of falling markets and consolidating their holdings in existing companies. On Monday, there were at least three instances where existing stakeholders announced hiking stakes.

GTL Ltd, a telecom equipment manufacturer said that its promoters through Global Holdings Corporation (GHC), have increased their stake in the company to 37.05% from 34.36% through open market transactions. GHC is the holding company of GTL, which now holds 32.35% stake in GTL. The company in a disclosure to BSE said, promoters are likely to raise their stake by an additional 5% by March 31, through creeping acquisition route. GTL shares after remaining subdued for the day, ended marginally higher by 0.34% or up Rs 0.80 to close the day at Rs 236.90 on the BSE.

In another instance, Life Insurance Corporation (LIC) of India increased its stake in Reliance Communications Ltd (R Com) to over 5%. For the quarter ended December 31, 2007, LIC held 4.76% in R Com. The R Com stock ended marginally higher by 0.45% at Rs 508.75, with 17.77 lakh shares changing hands on the BSE.

In the third instance of consolidation of holdings by the institutional investors, Koutons Retail Ltd said, Passport LLC, US-based global investment firm managing assets approximately at $4 billion has increased its stake from 4.84% to 7.7%, a hike of 290 basis points. The Kouton stock ended marginally lower by 0.14% or was down Rs 1.15 at Rs 805 on Monday on the BSE.