Foreign institutional investors (FII) are shying away from the IT bellwether,Infosys, as they have slashed their holdings in the company by more than 100 basis points ahead of its first quarter results.
The overseas investors sold 6.48 million shares or 1.13% stake of the company in April-June quarter, as per the data available on BSE website. This is the sharpest quarterly stake sale by overseas investors in the past fifteen quarters. Earlier, in September 2008, quarter the FIIs reduced their holding by 1.03% in the company.
In the quarter ended June 30, FIIs have reduced their stake in the country’s second-largest software services exporter to 37.89% from 39.02%, shareholding data showed.
Today, Infosys shares slumped as much as 10.2% at Rs 2,219, after the company cut its dollar revenue guidance for current fiscal to 5%, much lower than 8-10% it had predicted at the end of the March quarter.
Meanwhile, the company has reported a lower lower-than-expected 1.2% quarter-on-quarter drop in its consolidated net profit at Rs 2,289 crore (in rupee terms) for the quarter ended June 2012. Analyst had expected a net profit of around Rs 2,425 crore.
Individual public shareholders too, sold around 680,732 shares of the company, with their holding in the company down to 12.85% from 12.96%. Insurance companies however, hiked their stake to 13.18% from 11.83%, while mutual funds including UTI increased their holdings to 5.01% from 4.69% during the recently concluded quarter.
