Institutional investors have increased their holding in Tata Tea by 4.44 per cent in the last quarter, largely on the back of foreign institutional investor (FII) interest.
As per the shareholding pattern filed with the stock exchanges, the holding of institutional investors, which include the Unit Trust of India (UTI) and other mutual funds, banks, financial institutions (FIs), insurance companies and foreign institutional investors (FIIs), has gone up to 34.03 per cent from 29.59 per cent.
FII holding has risen by 3.83 per cent in January-March and mutual funds and UTI have also gained marginally. Consequently, public holding has gone down by 3.04 per cent.
Incidentally, institutional investors have increased their stake in the company at a time when the tea industry is reeling under recession.
The depressed market condition can be seen from the fact that the average auction price for tea, which was Rs 88.60 per kg in 1999 in Kolkata, has come down 22 per cent to Rs 69.06 in 2002.
If the whole of 2002-03 is considered, the holding of institutional investors has gone up by 5.53 per cent from 28.50 per cent earlier.
FIIs holding was under 1 per cent at the end of March 2002, which increased to 5.21 per cent at the end of March 2003.
Analysts tracking the stock said that the rise in stake follows the debt restructuring exercise of the company.
