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Virendra Verma

MUMBAI, Oct. 6

IN the depressed stock market last year, promoters increased their stake in their companies along with institutional investors; however, the public reduced their holding, reveals a sample of around 2,300 companies listed on the Bombay Stock Exchange (BSE).

According to the BSE's Annual Capital Market Review 02, promoters' holding in a sample of 2,270 companies increased from 53.44 per cent at the end of March 2001 to 55.48 per cent by the end of December 2001.

During the same period, institutional investors (banks, mutual funds, financial institutions, FIIs and insurance companies) increased their holdings from 15.10 per cent to 15.82 per cent. However, the public holding declined marginally from 19.93 per cent to 19.77 per cent.

Within the institutional investors, mutual funds and UTI holding declined from 4.44 per cent to 4.22 per cent. Banks, insurance companies and financial institutions increased their holdings to 7.72 per cent from 7.18 per cent and FIIs' stake went up from 3.48 per cent to 3.88 per cent.

Even in the BSE-500 index companies, the promoters' holding had gone up between March 2001 and December 2001. Promoters' stake increased from 56.93 per cent to 57.09 per cent. The stake of other investors like mutual funds, FIIs, banks, financial institutions, insurance companies and public had also gone up.

An analysis of shareholding among various sectors shows that the share of institutional investors is higher in FMCG companies compared to other sector groups and lower in pharma companies. Foreign promoters' holdings are found to be higher in FMCG companies as compared to other sectors.

Mutual funds had more or less similar holding, about 4-5 per cent across all sectors. Banks and financial institutions had higher shareholding in cement and FMCG, but held very less in IT companies.

On the contrary, FII shareholding was higher in IT companies. Indian public held very less of the public sector stocks as compared to pharma, FMCG, cement and IT in that order. NRIs/OCBs held anywhere between 1 and 3 per cent in most of the sectors except the public sector undertaking in which their holding was only 0.29 per cent.

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