Foreign institutional investors (FIIs) increased ownership in India Inc by 170 basis points to 20.4 per cent in 2010-11, purchasing depository receipts and through market operations.
Indian promoters issued shares worth Rs 61,300 crore, offering shares to overseas investors’ via depository receipts (ADR/GDR), placement to qualified institutional bidders (QIB), preferential allotments, public offerings and conversion of foreign currency convertible bonds (FCCBs).
FIIs holding in the broad-based BSE-500 mid and small-cap companies aggregated to 20.39 per cent and on a free-float basis (excluding promoters), it has been at 44.92 per cent. They raised holding in the 50 benchmark index companies (components of Sensex and Nifty) by 156 basis points to 25.97 per cent and on a free-float basis, not less than 50 per cent. FIIs holds a fourth of market value of private sector companies and 7.7 per cent in government-owned ones.
| GONE SHOPPING Y-o-Y change in holding of major shareholders in FY11 | ||||
| FIIs | FIs | Promoters | Public* | |
| Rise in % | 867 | 819 | 878 | 876 |
| More than 10 | 26 | 6 | 22 | 16 |
| Between 5-10 | 60 | 20 | 19 | 35 |
| Between 1-5 | 201 | 114 | 116 | 168 |
| Less than 1 | 215 | 165 | 131 | 166 |
| Fall in % | ||||
| More than 10 | 14 | 13 | 24 | 28 |
| Between 5-10 | 38 | 38 | 32 | 32 |
| Between 1-5 | 137 | 221 | 85 | 216 |
| Less than 1 | 164 | 205 | 138 | 213 |
| Unchange | 12 | 37 | 311 | 2 |
| Total sample (878 cos), no change in shareholding not included * including others | ||||
FIIs bought a record Rs 110,100 crore worth of shares in 2010-11. Of these, Rs 61,300 crore were through primary sources and Rs 48,800 crore from the trading platform of the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). In 2010, these investors had stepped up holdings by 150 bps to 18.7 per cent. The ownership pattern study is based on BSE-500 companies, mid and small-cap stocks.
The ownership of promoters has loosened a bit, by 170 bps, on account of foreign money that had dried in 2008, fallout of the US subprime scam.
The promoters, including private sector, government and holding by multinational companies, is 54.6 per cent of the market value of listed entities, down from 56.4 per cent in 2010. The holding of Indian promoters in the private sector declined marginally by 60 basis points, on account of equity offering to foreign investors.
The government increased its holding by around 25 basis points through preferential allotment by public sector banks. The holding of the public and others was down marginally by 50 bps, while that of other corporate bodies was up by 50 bps.
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Overall, private placement for QIBs was Rs 25,350 crore, while shares offerings through ADR/GDR aggregated to Rs 11,323 crore.
Shares offered through preferential allotments were worth Rs 12,266 crore, while those issued after conversion of FCCBs were valued at Rs 6,401 crore. The shares bought through other means aggregated to Rs 6,000 crore. Promoters went for preferential allotment, creeping acquisitions and open market buy-out to increase their holdings. The government fastened its hold on 10 public sector banks through preferential issues worth Rs 12, 266 crore.