The collective stake of financial institutions which stood at around 22 per cent for the last few years have declined to 18.5 in the last quarter.
Total holding of banks, financial institutions, and insurance companies have declined from 20.7 per cent till July 2003 to 17.5 per cent in September.
Life Insurance Corporation of India (LIC) which held around 13.8 per cent in CESC for many years now, has in the three month offloaded around 13.34 lakh shares.
This brought down its holding in company to 11.68 per cent. National Insurance Company (NIC) has also offloaded around 32,000 shares thus reducing its stake from 2 per cent in CESC to a 1.5 per cent.
Experts watching the sector said that most of these sales were for profit booking when the CESC scrip rose considerably some weeks ago.
Private corporate bodies (PCBs) on the other hand increased their stake in the company by as much as five per cent. The holding of PCBs in fact increased from 11 per cent to 16 per cent in the same period.
Sources close to the development said that these private corporate bodies could be companies or entities controlled by the RPG group.
Meanwhile, CESC has decided to issue and allot 3.3 million new equity shares to the management group at Rs 49.7 each totaling Rs 16 crore through RPG group companies Hilltop Holdings India and Jubilee Investments & Industries.
The promoters who hold 38.27 per cent in the company will have their stake enhanced by 5.07 per cent to 43.34 per cent once the shares are allotted.
The promoters will have to pledge around 17.36 per cent stake of their stake with creditors against 15.3 per cent required earlier when promoters
