Foreign Institutional Investors (FIIs) increased their holdings in 250 stocks listed on the BSE 500 index during the June quarter, signaling growing interest from international investors.
Data from Trendlyne showed that stocks in which FIIs raised a majority stake in the June 2023 quarter include names like Max Healthcare Institute, Sona BLW Precision Forgings, Shriram Finance, HDFC Asset Management Company, and Chemplast Sanmar.
Max Healthcare Institute witnessed a notable surge in FII holdings, reaching an all-time high of 59.9% during the June quarter. FIIs held a 52% stake in the company during the preceding March quarter.
In contrast, Domestic Institutional Investors (DIIs) have reduced their stake in the company to 11.9% in Q1FY24, a decline from the 19.4% in Q4FY23.
The other stock where FIIs were bullish in the last quarter was Sona BLW Precision Forgings. The company is engaged in designing, manufacturing, and supplying engineered automotive systems and components, such as differential assemblies, gears, conventional and micro-hybrid motors, BSG systems, and EV traction motors, across all vehicle categories.
During the June quarter, FIIs raised their holdings to 31.7%, an increase of 7% QoQ. Since Q1FY23, FIIs have been increasing their stake, but the majority of the increase happened in the most recent quarter.
In Q4FY23, private equity firm Blackstone, which is one of the promoters of Sona BLW Forgings, offloaded its 20.50% stake in the company for approximately ₹4,917 crore via a block deal. As a result of this transaction, the promoter's stake in the company was reduced from 53.5% to 33% in Q4FY23. In addition, promoters have cut their stake further in June quarter to 29.8%.
DIIs, on the other hand, also lowered their stake in the company to ₹28.2% in Q1FY24 when compared to 31.3% during Q4FY23.
Meanwhile, Shriram Finance witnessed its FII holdings surge to 55.4% in the June quarter. In comparison, during the March quarter (Q4FY23), FIIs held 49.8% of the company's shares.
While foreign investors continue to bet on the company, general shareholders have trimmed their stake to 4.5% in Q1FY24 from 5.5% in Q4FY23. General shareholders have been consistently trimming their stake in the company.
Shriram Finance is a leading financial institution primarily focused on providing financing solutions for various sectors. The company specializes in offering financial services for commercial vehicles, passenger vehicles, construction equipment, farm equipment, micro, small, and medium enterprises (MSMEs), two-wheelers, as well as gold and personal loans.
Next on the list was HDFC Asset Management Company, which saw an increase in FII holdings to an all-time high of 13% in Q1FY24, an increase of 5.5% QoQ and 5.7% YoY. Similarly, DIIs also raised their stake in the company to 22.3% in Q1FY24 from 17.6% in Q4FY23.
HDFC Asset Management Company is in the business of providing asset management services to HDFC Mutual Fund & alternative investment fund and portfolio management & advisory services to clients.
Chemplast Sanmar was another company that witnessed a strong spike in FII holdings to 11.5% in the June quarter, a surge of 4.1% QoQ, while DIIs and regular shareholders each own 26.6 percent and 6.9 percent, respectively.
The company is a leading speciality chemicals manufacturer with a focus on speciality paste PVC resin and custom manufacturing of starting materials and intermediates for the pharmaceutical, agro-chemical, and fine chemicals sectors.
Further, FIIs also increased their stake in Cyient, RBL Bank, Coforge, Indian Hotels Company, and Aditya Birla Capital by 3% to 4% in the June quarter.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
