The combined GDR (Global Depository Receipt) holding in Reliance Petroleum Ltd (RPL) has gone down by 5.22 per cent during the last quarter October-December, 2001.
GDRs held in trust by Bank of New York in RPL fell to 1.03 per cent at the end of December 31, 2001, from 6.25 per cent at the end of the September quarter.
In the same period, the combined holding of foreign institutional investors (FIIs) has gone up by over 3 per cent. FII holding has gone up from a mere 0.61 per cent on September 30, 2001 to 3.64 per cent as on December 31.
The reduction in GDR holding and the rise in FIIs' stake indicates that GDR holders might have encashed the GDRs and converted them into shares, which in turn have been sold in the market.
"GDR holders might have sold out as the stock moved in a close price band of Rs 28-35 and opted for better opportunities. They might have also used the arbitrage opportunity and converted in shares," sources said.
However, all that has been offloaded through GDRs has not been picked up by FIIs. For instance, in the same period, combined holding of mutual funds and Unit Trust of India (UTI) in RPL has gone up from 5.67 per cent to 6.17 per cent. Moreover, the total stake of banks, Indian financial institution and insurance companies have gone up to 4.22 per cent from 4.03 per cent. The total institutional holding thus have gone up by 4 per cent during October-December.
In this period, the private corporate bodies' holding has gone up to 1.75 per cent on December 31 from 0.94 per cent at the end of September 30. The public holding also increased to 17.86 per cent from 17.17 per cent during the period.
In March 2001, RPL had said it planned to issue GDRs against existing domestic shares to be listed on the Luxembourg Stock Exchange and there would be no fresh domestic issue against the GDR issue.
The promoters had said then they also intended to participate in the offering, and bring its shareholding down from 64 per cent to 51 per cent, in appropriate tranches. However, promoters holding continued to remain at the level of 65.25 per cent at the end of third quarter.
RPL said it would benefit from the GDR offering through broadening of its international investor base, an enhanced international profile, and access to new markets in the future for financing growth opportunities in marketing, distribution, pipelines, storage, terminals.
On Monday, RPL share closed at Rs 29.55 at both BSE and NSE with volumes of 10,95,855 and 17,67,392, respectively.
