London-based inter-bank foreign exchange market maker Swiss Finance Corporation (SFC) has picked up stakes in mid-cap firms-based in South India such as India Cements Ltd, IVRCL Infrastructure and Projects Ltd (IVRCL) and Matrix Laboratories Ltd (Matrix Lab) since November 10, 2008, through open market purchases. SFC, through its Mauritius subsidiary, has also picked up stakes in two other companies – Aditya Birla Nuvo and Gitanjali Gems.
Analysts feel that the rock bottom valuation of the stocks of these companies might have prompted foreign institutional investors (FIIs) to shop for these shares in the open market.
The SFC through a block deal on the National Stock Exchange (NSE) has picked up 25,20,000 shares of India Cements Ltd for a total consideration of Rs 22.60 crore, which accounts for a tad lower than 1% stake in the company. While the UK firm had coughed up Rs 89.70 per share, India Cements stock closed on NSE on Wednesday at Rs 84.70, down by Rs 5 from the purchase price of the stock on Monday. Similarly, it had picked up 34,05,049 shares aggregating to 2.55% stake in IVRCL Ltd by shelling out close to Rs 53.63 crore from the open market on Monday. SFC has picked the shares at a price of Rs 157.50 from the market while IVRCL was quoting at a huge discount of Rs 134.25 per share at the closing time on Wednesday on NSE. Similarly, it had picked up around 1.38% stake in Matrix Lab for a total consideration of 18.94 crore on Monday.