The sale of LIC stock – the biggest problem, despite having been a very limited one, pushed government holdings in publicly traded companies to a high of 7.15 percent in the June quarter, from 5.48 percent in the quarter from March.
But in value terms, the government stake in NSE companies increased by 20.24 percent to Rs 16.99 lakh crore – mainly due to the LIC issuance, which is now valued as the tenth largest in terms of market capitalization at Rs 4.29 lakh. crore – in the June quarter . It was Rs 14.13 lakh crore in March 2022, according to an analysis by Prime Database.
This is much lower than the value of Reliance Industries with a market cap of Rs 17.63 lakh crore.
The government share (as promoter) in NSE-listed companies rose to 7.15 percent on June 30, 2022, from 5.48 percent in March 2022.
According to Pranav Haldea, the director of Prime Database Group, this was mainly due to the Rs 20,557 crore LIC IPO in May (which is only about a third of what was initially planned, with a sale of just 3.5 percent).
Over the past 13 years (since June 2009), the government’s share of publicly traded companies has steadily declined from 22.48 percent in June 2009 to 7.15 percent in June 2022, mainly due to divestments, lack of many new lists such as also poor performance of many central units compared to their private counterparts.
On the other hand, the share of private promoters fell from 45.12 percent in March to 44.33 percent in June. Surprisingly, the private promoter’s share has steadily increased from 33.60 percent since June 2009.
In terms of value, private promoter holdings have increased more than seven-fold to Rs 105.32 lakh crore in June 2022, from just Rs 14.49 lakh crore in June 2009, helped mainly by new offerings.
Of these, the proportion of domestic private promoters has increased from 26.44 percent to 35.67 percent over the past 13 years, while the proportion of foreign promoters has increased from 7.16 percent to just 8.66 percent.
According to the analysis, the top 10 companies by market capitalization accounted for a massive 90.68 percent of the total FPI holding, up from 90.51 percent in March 2022, 85.61 percent of the total DII holding (up from 85. 19 percent) and 82.93 percent of MF’s total stake (versus 82.65 percent), indicating a high concentration of institutional investor holdings, Haldea said.
While the share of retail and HNI investors also fell, the collective share of retail, HNI and MFs hit a record high of 17.42 percent, from 17.38 percent.
The share of HNIs also fell to 2.08 percent from 2.21 percent and so did the combined share of retail and HNI, which fell from 9.63 percent to 9.47 percent.
But in terms of value, private investor share fell to 7.40 percent or Rs 17.58 lakh crore from 7.42 percent or Rs 19.15 lakh crore.
The share of domestic institutional investors (MFs, insurers, banks, financial institutions, pension funds, etc., along with retail and high net worth individual investors) reached a record high of 23.53 percent in June 2022, from 23.34 percent in June 2022. March 2022, thanks to the net inflow of DIIs amounting to Rs 1,28,277 crore during the quarter.
This also caused the share of foreign portfolio investors (FPIs) to fall to a decade-long low of 19.2 percent (or Rs 45.62 lakh crore) as they engaged in sales in the quarter and set a record high of Rs 1.07. .340 crore.
Their ownership is down 96 basis points from 20.16 percent in March 2022. In March 2015, their share was 23.30 percent, while the combined share of DIIs, retail and HNI was only 18.47 percent.
However, FPIs are still the largest non-promoter shareholders in the domestic market and their investment decisions have a huge impact on stock prices and the general direction of the market.
The value of FPI shares in NSE companies was Rs 45.62 lakh crore in June 2022, down 12.26 percent from Rs 51.99 lakh crore in March 2022. FPIs withdrew Rs 69,476 crore from the shares of the financial services and information technology sector during the quarter and invested Rs 5,087 crore in services and healthcare.
According to Haldea, this further shows the rise of domestic investors and the enormous compensatory role they have played for foreign investors.
The gap between the FPI and DII holding has fallen to its lowest level this quarter, with the DII holding now just 26.77 percent lower than the FPI holding. In March 2022, the DII holding was 31.99 percent lower than the FPI holding. The biggest gap between the FPI and the DII holding was in March 2015, when the DII holding was 55.45 percent lower than the FPI holding.
The FPI to DII ownership ratio also fell to an all-time low of 1.37 in June 2022, from 1.47 in March 2022. Since June 2009, FPI’s share has risen from 16.02 percent to 19.20 percent, while the DII share of 11.38 percent has risen. cents to 14.06 percent.
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