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Institutions Offloaded 3% In Tata Tea In Jun-Dec

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BUSINESS STANDARD
Last Updated : Jan 28 2013 | 12:40 AM IST

Institutional investors have offloaded nearly 3 per cent in Tata Tea during June-December, last year.

These investors, who include mutual funds (MFs), UTI, banks, financial institutions (FIs), insurance companies and foreign institutional investors (FIIs) have reduced their holding by 2.92 per cent from 32.11 per cent in June to 29.19 per cent as on December 31, 2001.

FIIs offloaded the maximum from 4.97 per cent to 2.13 per cent followed by mutual funds (MFs) and UTI at 1.44 per cent.

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However, banks, FIs and insurance companies raised their holding marginally.

Public holding in the company has also come down by 3.02 per cent to 29.54 per cent. Simultaneously, private corporate bodies (PCBs) have increased their stake by 6.15 per cent to 9.77 per cent.

Analysts, tracking the company said, the tea industry's woes still continue. "Globally tea prices crashed last year due to oversupply. Though global output is understood to have come down, but, prices are yet to pick up in India and the situation is no different in the export market. Institutions may have opted for more attractive scrips during the period," said sources.

Sources were however quick to point out that Tata Tea as a company was revamping its brand portfolio. The company has launched the Tetley brand in the country and relaunched some of its existing brands.

Conventional black tea under the Tetley brandname will also roll out across the country through vending machines this year. The company also entered the low price segment with the launch of Agni Sholay, as part of its strategy to address difference price points.

"These aggressive marketing strategies might help the company post better results which if it happens will again bring back the institutions to the counter" said sources.

The shareholding pattern of Tata Tea as on December 31, 2001 indicates that Indian promoters have 29.57 per cent, MFs & UTI are at 3.39 per cent, banks, FIs, insurance companies 23.66 per cent, FIIs at 2.13 per cent, PCBs have 9.77 per cent, Indian public is at 29.54 per cent, NRIs/OCBs at a paltry 0.29 per cent, subsidiary companies 0.35 per cent, GDR 1.17 per cent, Trusts 0.06 per cent and directors and relatives have 0.05 per cent.

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First Published: Mar 26 2002 | 12:00 AM IST

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