FIIs Make Beeline For HDFC Stock

Mumbai, Nov 6: | Updated: Nov 7 2003, 05:30am hrs
Two foreign institutional investors (FIIs) FMR Corp and Fidelity International Ltd and their direct and indirect subsidiaries have acquired 2.36 per cent (57,86,139 shares) stake in Housing Development Finance Corporation Ltd (HDFC). After this acquisition their shareholding in the company stands at 6.80 per cent, HDFC informed The Stock Exchange, Mumbai (BSE) on Thursday.

This announcement comes even as the stockmarket on Thursday witnessed a large block deal in the HDFC counter, with nine lakh shares changing hands. In this case too, two FIIs are believed to have picked up the shares, brokers told FE.

Thursdays deal took place at Rs 520 per share, totalling Rs 46.80 crore. The identity of the sellers and the names of the two FIIs, however, could not be ascertained. On BSE, the HDFC stock closed at Rs 520.05, down Rs 11.85 on volumes of 14.57 lakh shares. On the National Stock Exchange (NSE), the HDFC stock closed at Rs 519.95, down Rs 11.85 on volumes of 3.34 lakh shares. Dealers said HDFC is typically an FII favourite, with most of its equity anyway in foreign hands.

The secondary market transactions in the counter are also typically between FIIs, a dealer at a foreign brokerage said.

As on September 30, 2003, the foreign shareholding in HDFC stood at 75.54 per cent of the total equity, with the FII holding to the tune of 54.77 per cent. Foreign direct investment (FDI) is to the tune of 20.64 per cent, while non-resident Indians and overseas corporate bodies together hold 0.13 per cent.

Among the FIIs, Emerging Markets Growth Fund Inc holds 6.02 per cent of the total equity as on September 30, 2003. UBS Warburg Asia Ltd holds another 1.43 per cent, Capital Research and Management Co holds 4.36 per cent, while Templeton Global Advisors Ltd holds another 2.30 per cent and Standard Life Assurance Co another 4.77 per cent.