Small individual investors and high net-worth individuals (HNIs) seem to be on a share buying spree in Kingfisher Airlines, even as the stake of the promoters themselves has hit a record low in the debt-ridden airline.
The small individual shareholders currently own 12.56 per cent stake in Vijay Mallya-led Kingfisher Airlines, while another 8.55 per cent holding is now with the high-networth individuals.
The holding of small investors (defined as those holding up to Rs 1 lakh worth shares in a company) has almost doubled in about 15 months, while that of HNIs (individuals with shares worth over Rs 1 lakh) has more than tripled.
The latest shareholding data of the company shows the numbers of small individual and HNI shareholders have also grown considerably during this time.
On the other hand, the total promoter holding has dipped to 35.86 per cent — the lowest since the carrier became a publicly listed company after acquisition of Deccan Aviation.
Besides, the promoters have pledged over 90 per cent of their shares with various lenders, leaving them with a non- encumbered stake of just 3.55 per cent. The promoter holding has come down sharply from over 50 per cent at the close of last financial year (March 31, 2012) and close to 60 per cent a year before (as on March 31, 2011).
Burdened by a huge debt pile, Kingfisher has been flying through turbulent times for many months now and its market value has seen a significant erosion in the past one year.
Its shares hit an all-time low of Rs 10.05 early last month and are currently trading near Rs 11 level. About a year ago, the stock was trading over Rs 40 level.
The recent decline in promoter holding is not because of sale of shares but because of increase in total number of the company's shares, following the conversion into equity of warrants issued to certain entities.
The shareholding of institutional investors has also come down in the recent quarters and has nearly halved to 14.3 per cent currently, from 27.18 per cent as on March 31, 2011.
Speculations have been doing the rounds for a long time that some strategic or financial investors could acquire stake in Kingfisher — a reason being attributed for large-scale share purchase by individual investors.
As a result, the shareholding of small individuals has grown considerably from 9.56 per cent as on March 31, 2012 and 5.36 per cent as on March 31, 2011. The HNIs’ stake has also come up from 4.21 per cent as on March 31, 2012 and 2.31 per cent as on March 31, 2011.
More than 176,000 small individuals currently own Kingfisher shares — up from about 135,000 at the beginning of the current financial year and about 95,000 as on March 31, 2011.
The total number of HNI shareholders currently stand at more than 1,800 — as against 668 as on March 31, 2012 and just 265 a year before that.
