Generally, mutual funds and FIIs do not invest in penny stocks due to the risks associated with them. These days, however, they are searching for penny stocks that are fundamentally strong so that they can generate stellar returns. Many stocks that have made it to the mid-cap or the large-cap list were once penny stocks or small-cap stocks.
Here are 6 penny stocks held by mutual fund houses:
Federal Bank (CMP – ₹93.65)
In the latest quarter mutual funds have increased their stake in the Kochi based bank from 32.58% to 33.61%. Their share in the company has gradually increased over the years. The bank has zero promoter holdings. FIIs hold a 26.01% stake in the company. It has tie-ups with many start-ups and neo-banking platforms.
DCB Bank (CMP – ₹81.75)
Mutual funds hold a 27.14% stake in this private sector bank that has a network of over 367 branches and 353 ATMs. Promoters hold a 14.86% stake, and FIIs hold an 8.82% stake. The rest is held by the public and other investors.
Ashoka Buildcon (CMP – ₹78.05)
Mutual Funds hold a 20.98% stake in this construction and infrastructure company. Mutual Funds have a 20.98% in as per March 2022 data. Its promoter holdings are constant at 54.48%. FIIs hold a 2.13% stake and the rest is held by retail investors and others.
Gujarat Pipavav Port (CMP – ₹85)
Mutual funds hold a 19.78% stake in this marine services company. Interestingly, FIIs have increased their holdings from 22.29% to 22.78% in the latest quarter. Its promoters hold a 44.01% stake and the remaining is held by the public and the others.
Karur Vysya Bank (CMP – ₹45)
This mid-sized private sector bank has a presence mainly in South India. Mutual Funds have increased holdings from 16.93% to 18.61% in the Dec 2021 quarter. It has a network of over 781 branches, of which about 54% are located in semi-urban and rural areas.
Lemon Tree Hotels (CMP – ₹60.6)
Mutual funds hold a 12.02% stake in Lemon Tree hotels which is India’s largest mid-priced hotel-chain owner. FIIs have substantially increased their holdings from 22.81% to 28.72% in Mar 2022 quarter. Its promoters have unpledged 6.19% of the shares that they had pledged.
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
