Foreign Institutional Investors (FIIs) are overseas entities like pension funds, investment trusts, asset management companies, etc. that are allowed to invest in Indian securities like stocks, bonds, and other instruments.
Foreign Institutional Investors (FIIs) add value to the Indian stock market through increased liquidity, boosting economic growth, integration with global markets, and expertise and research.
Below are four stocks in which both FIIs and promoters have reduced divested stake.
KFin Technologies Ltd
KFin Technologies Limited is a leading technology-driven financial services platform. The company provides services and solutions to asset managers and corporate issuers across asset classes in India and provides several investor solutions including transaction origination and processing for mutual funds and private retirement schemes in Malaysia, the Philippines, and Hong Kong.
KFin Technologies Ltd shares fell 7.4% to ₹689.25 apiece after a block deal. The company has a market capitalization of ₹11,889 crores.
On May 30, KFin Technologies saw a significant transaction on the exchange, with nearly 5.9 percent of its shares traded in a ₹720-crore block deal.
According to a report by CNBC-TV18 on Wednesday, Foreign Institutional Investor, General Atlantic Singapore Fund, a global private equity firm, was considering selling a 4.1 percent stake in KFin Technologies. This stake sale could increase to 6.8 percent, with the initial offering valued at ₹500 crore, potentially reaching ₹833.3 crore.
KFin Technologies Ltd. shares have gained 31 percent in the last six months and 111 percent in a year.
In December, General Atlantic, the promoter of KFin Technologies, sold a significant stake sale by divesting approximately 10% of the company’s equity, resulting in a transaction worth ₹ 851 crore.
R R Kabel Ltd
R R Kabel Ltd is one of the leading companies in India’s consumer electrical industry (comprising wires and cables and FMEG). The company is the fifth largest player in the branded wires and cables market in India, representing approximately 7% market share by value as of FY23 (vs. 5% in FY15).
R R Kabel Ltd shares gained 6% to ₹1,820.80 apiece after a block deal. The company has a market capitalization of ₹19,636 crores.
During the pre-market block window on May 30th, there was significant trading activity for RR Kabel Ltd.,, with approximately 56 lakh shares changing hands. This volume represented about 5% of the company’s total equity.
CNBC-TV18 previously reported that Foreign Institutional Investor (FII), TPG Asia VII SF Pte Ltd., planned to divest up to 5% of the company’s total equity. The offered floor price per share was ₹1,700, which marked a 1.1% discount from the previous day’s closing price. The total offer size was estimated at ₹957.7 crore.
R R Kabel Ltd. shares have gained 7 percent in the last six months and 45 percent in a year.
IRB Infrastructure Developers Ltd
IRB Infrastructure Developers Ltd (IRB) is India’s first Integrated Multi-National Transport Infrastructure Developer specializing in roads and highways. As India’s largest private toll road and highway infrastructure developer.
IRB Infrastructure Developers Ltd shares fell 13% to ₹63.30 apiece after a block deal. The company has a market capitalization of ₹39,778 crores.
Reports on May 30 indicated that 300 million shares of the company were traded in a block deal, with speculation suggesting IRB Holding Pvt Ltd and Deepali Virendra Mhaiskar as potential sellers.
According to these reports, the duo aimed to sell up to 4 percent of the company’s equity capital within a price range of Rs 63 to Rs 72.70 per share. Promoter Deepali Virendra Mhaiskar held a 0.27 percent stake in the company, while the promoter group IRB Holding Pvt Ltd held 33.2 percent.
It also operates in other infrastructure-related business categories such as road maintenance, building, airport development, and real estate.
IRB Infrastructure Developers Ltd shares have gained 78 percent in the last six months and 134 percent in a year.
Great Eastern Shipping Company Ltd
Great Eastern Shipping Co. Ltd. is engaged in shipping and offshore business. Its shipping business offers transportation services for crude oil, petroleum products, gas, and dry bulk commodities.
Great Eastern Shipping Company Ltd shares fell 2.1% to ₹1,033.50 apiece after a block deal. The company has a market capitalization of ₹15,197 crores.
On May 29, Ghisallo Master Fund LP bought approximately 0.7 percent of Great Eastern Shipping Company through a bulk transaction, purchasing around 8 lakh shares at an average price of Rs 1,045 each.
Conversely, Foreign Institutional Investor,Nalanda India Fund Limited divested about 1.4 percent of its stake in Great Eastern Shipping Company, selling approximately 20 lakh shares at an average price of Rs 1,045.14 per share. As of March 30, Nalanda India Fund Limited held a 7.37 percent stake in the company.
Great Eastern Shipping Company Ltd shares have gained 18 percent in the last six months and 51 percent in a year.
Written by Omkar Chitnis
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