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.
Dipak Patel, portfolio manager, Passport Capital LLC said, ?The penetration of organised modern retail in India is miniscule as only less than 5% of the retail industry is organised. There is tremendous growth opportunity for organised retailers, given India?s favourable demographics dominated by a young working population with rising disposable income and increasingly western lifestyle. We initially invested in Koutons when it was an unlisted company.?