A reduction in stake by Foreign Institutional Investors (FIIs) can lead to significant liquidity issues, causing stock prices to drop and increasing market volatility. This withdrawal often reflects a lack of confidence in the company’s prospects, potentially deterring other investors and impacting the company’s ability to raise capital.
Here are two such stocks in which FIIs are pulling back:
Max Financial Services Limited
Max Financial Services Ltd is a prominent entity in India’s financial sector, primarily serving as the holding company for Max Life Insurance, the largest non-bank life insurer in the country. The company specializes in investment management and advisory services.
With a market capitalization of Rs.39,167 crore, Max Financial Services Ltd’s share price is currently at Rs.1,135.4 per share on Friday, up 1.55 percent from its previous close.
For the June 2024 quarter, FIIs reduced their holdings in the company from 47.7 percent to 46.6 percent. Promoters of the company currently hold 6.52 percent, while DIIs (Domestic Institutional Investors) and Public investors own 40.74 percent and 6.14 percent respectively in the company.
In Q1 FY25, Max Financial Services reported a 28.7 percent year-on-year increase in revenue to Rs.11,799 crore and a 54.5 percent rise in net profit to Rs.156 crore.
Hilton Metal Forging Limited (HMFL)
Hilton Metal Forging Limited (HMFL) manufactures stainless-steel forging flanges, butt-weld fittings, railway wheels, gear blanks, and forged crankshafts, among other products. These items serve industries including oil and gas, petrochemicals, marine, paper and pulp, and automotive sectors
With a market capitalization of Rs.185 crore, HMFL’s share price is currently at Rs.87.6 per share on Friday, up 1.01 percent from its previous close.
For the June 2024 quarter, FIIs completely exited their position in the company, reducing their stake from 0.29 percent to zero. Currently, promoters own 27.67 percent of the company, while public investors hold 72.34 percent. Domestic Institutional Investors (DIIs) have no holdings.
In Q1 FY25, Hilton Metal Forging Limited (HMFL) reported a 23 percent year-on-year increase in revenue to Rs.34.03 crore, though net profit fell sharply by 66.5 percent to Rs.0.57 crore.
Written by – Siddesh S Raskar
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