Monday, July 25, 2005
India Shining: FIIs now hold $1-bn stakes in 13 Indian cos (July 25, 2005)
MUMBAI: HERE is another piece of evidence that India has emerged as a major destination for FII investment. The high-profile club of companies with FII investment worth $1bn or more is expanding fast amid strong inflows of foreign funds into Indian equities.
There are 13 Indian companies in which FIIs hold investments worth $1bn and above, compared with only five a year ago. The value of FII investments are worked out on the basis of their holdings as on June 30, ’05, and the share prices of the respective companies.
Infosys Technologies topped the list with FII holdings worth $5.5bn, followed by Reliance Industries (RIL) with $4.9bn and ICICI Bank with $3.4bn. The list also included corporate heavyweights such as HDFC, Bharti Tele-Ventures, ONGC, Satyam Computer Services, ITC, HDFC Bank, Bhel, Hindustan Lever, NTPC and SBI.
Except for Infosys, ICICI Bank and Satyam Computer, all other companies in the list have witnessed a rise in FII holding during the past one year. Among the 13 companies, Bharti Tele has emerged as the biggest recipient of FII funds over the year, with the FII stake rising to 24.7% from 9% on June 30, ’04. The FII investment in the company has jumped to $2.8bn from $0.5bn.
FIIs also increased their stakes substantially in HDFC Bank and ITC. As on June 30, ‘05, they held 31.5% and 17.5%, respectively, in the two companies, compared with 27% and 14.5%, a year ago. The other companies have seen a marginal rise in FII holdings — between 0.5% and 2.1% in absolute terms.
Sustained FII buying has turned shares of the 13 companies into star performers on the bourses, with most of them outperforming the overall market by a wide margin. A few shares like Reliance Industries, Bharti Tele and Bhel, in fact, touched life-time high values on Friday.
Bhel was the biggest gainer, with the share price soaring 97% to Rs 991 since June 30, ’04. FIIs hiked their stake in the company to 22% from 20.6%, during the period, while the sensex gained 55%, to close at a new life-time high of 7423 on Friday.
The Bharti Tele share price has jumped 96% to end at Rs 267, while ITC shot up 85% to Rs 1,643.5. HDFC Bank spurted 75% to Rs 649.
FIIs hold substantial stakes in several other blue chip companies, though their investments in these companies are yet to touch the $1bn mark.
They, for instance, held a 22.2% stake in pharma major Ranbaxy Laboratories. Their investment is worth $0.99bn now, just short of the $1bn mark. TCS, Tata Motors, Hero Honda, Tata Steel and Larsen & Toubro are the other companies in which FIIs held stakes between 6% and 27%. The FII investment in these companies range from $0.7bn to $0.9bn.
There are 13 Indian companies in which FIIs hold investments worth $1bn and above, compared with only five a year ago. The value of FII investments are worked out on the basis of their holdings as on June 30, ’05, and the share prices of the respective companies.
Infosys Technologies topped the list with FII holdings worth $5.5bn, followed by Reliance Industries (RIL) with $4.9bn and ICICI Bank with $3.4bn. The list also included corporate heavyweights such as HDFC, Bharti Tele-Ventures, ONGC, Satyam Computer Services, ITC, HDFC Bank, Bhel, Hindustan Lever, NTPC and SBI.
Except for Infosys, ICICI Bank and Satyam Computer, all other companies in the list have witnessed a rise in FII holding during the past one year. Among the 13 companies, Bharti Tele has emerged as the biggest recipient of FII funds over the year, with the FII stake rising to 24.7% from 9% on June 30, ’04. The FII investment in the company has jumped to $2.8bn from $0.5bn.
FIIs also increased their stakes substantially in HDFC Bank and ITC. As on June 30, ‘05, they held 31.5% and 17.5%, respectively, in the two companies, compared with 27% and 14.5%, a year ago. The other companies have seen a marginal rise in FII holdings — between 0.5% and 2.1% in absolute terms.
Sustained FII buying has turned shares of the 13 companies into star performers on the bourses, with most of them outperforming the overall market by a wide margin. A few shares like Reliance Industries, Bharti Tele and Bhel, in fact, touched life-time high values on Friday.
Bhel was the biggest gainer, with the share price soaring 97% to Rs 991 since June 30, ’04. FIIs hiked their stake in the company to 22% from 20.6%, during the period, while the sensex gained 55%, to close at a new life-time high of 7423 on Friday.
The Bharti Tele share price has jumped 96% to end at Rs 267, while ITC shot up 85% to Rs 1,643.5. HDFC Bank spurted 75% to Rs 649.
FIIs hold substantial stakes in several other blue chip companies, though their investments in these companies are yet to touch the $1bn mark.
They, for instance, held a 22.2% stake in pharma major Ranbaxy Laboratories. Their investment is worth $0.99bn now, just short of the $1bn mark. TCS, Tata Motors, Hero Honda, Tata Steel and Larsen & Toubro are the other companies in which FIIs held stakes between 6% and 27%. The FII investment in these companies range from $0.7bn to $0.9bn.
# posted by Logan Ramasamy @ 5:11 PM 
