The sale of LIC shares – the biggest issue, albeit at a very low level, has pushed the government’s holding in listed companies to an all-time high of 7.15 per cent in the June quarter from 5.48 per cent in the March quarter.
But in terms of value, the government’s holdings in NSE companies increased by 20.24 per cent to Rs 16.99 lakh crore – mainly due to the LIC issue, which is now the tenth largest by market capitalization at Rs 4.29 lakh crore. is – in the June quarter. It was Rs 14.13 lakh crore in March 2022, according to Prime Database analysis.
This is much lower than the value of Reliance Industries which has a market cap of Rs 17.63 lakh crore.
The government’s shareholding (as promoter) in NSE-listed companies has increased to 7.15 per cent as on June 30, 2022, from 5.48 per cent in March 2022.
According to Pranav Haldia, managing director, Prime Database Group, this was mainly due to the Rs 20,557-crore LIC IPO in May (only about a third of what was initially planned, with only 3.5 per cent sold). .
Over the past 13 years (since June 2009), the government’s share in listed companies has been steadily declining, from 22.48 percent in June 2009 to 7.15 percent in June 2022, mainly due to exit, many new companies. There is a shortage. Lists as well as the poor performance of many central units compared to their private counterparts.
On the other hand, the share of private promoters declined from 45.12 per cent in March to 44.33 per cent in June. Surprisingly, since June 2009, the share of the private promoter has been increasing continuously from 33.60%.
In terms of value, private promoter holdings have grown more than sevenfold to Rs 105.32 lakh crore in June 2022 from just Rs 14.49 lakh crore in June 2009, largely on the back of new listings.
In this, the share of domestic private promoters has increased from 26.44 per cent to 35.67 per cent in the last 13 years, while the share of foreign promoters has increased from 7.16 per cent to only 8.66 per cent.
According to the analysis, the top 10 companies by market capitalization account for 90.68 percent of the total FPI holdings, up from 90.51 percent in March 2022, 85.61 percent of the total DII holdings (up from 85.19 percent) and 82.93 percent. The overall MF holding percentage (up from 82.65 per cent), reflects the high level of concentration in institutional investors’ holdings, says Haldia.
While the share of retail and HNI investors also came down, the combined share of retail, HNI and MFs rose to an all-time high of 17.42 per cent from 17.38 per cent.
The share of HNIs also declined from 2.21 per cent to 2.08 per cent and similarly the combined retail and HNI share also declined from 9.63 per cent to 9.47 per cent.
But in terms of value, the share of retail investors declined from 7.42 per cent or Rs 19.15 lakh crore to 7.40 per cent or Rs 17.58 lakh crore.
The share of domestic institutional investors (MFs, insurers, banks, financial institutions, pension funds etc. as well as retail and high-net-worth individual investors) rose to an all-time high of 23.53 percent from 23.34 percent in June 2022. March 2022, on the back of net inflows from DIIs of Rs 1,28,277 crore during the quarter.
The share of foreign portfolio investors (FPIs) also fell to a decade-low of 19.2 percent (or Rs 45.62 lakh crore) as they raked in a record Rs 1,07,340 crore in the quarter due to selling enthusiasm. I was
Their ownership is down 96 bps from 20.16 percent in March 2022. In March 2015, their share was 23.30 per cent while the combined share of DIIs, retail and HNI was only 18.47 per cent.
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 overall market direction.
The value of FPI holdings in NSE companies stood at Rs 45.62 lakh crore in June 2022, down 12.26% from Rs 51.99 lakh crore in March 2022. quarter and invested Rs 5,087 crore in services and healthcare.
According to Haldia, this further reflects the rise of domestic investors and the heavy counterbalancing role they have paid to foreign investors.
The gap between FPI and DII holdings narrowed this quarter, with DII holdings now just 26.77% lower than FPI holdings. In March 2022, DII holdings were 31.99% lower than FPI holdings. The biggest difference between FPI and DII holdings was in March 2015, when DII holdings were 55.45% lower than FPI holdings.
The ratio of FPI to DII ownership also declined from 1.47 in March 2022 to an all-time low of 1.37 in June 2022. Since June 2009, the share of FPI has increased from 16.02 percent to 19.20 percent, while the share of DII has increased from 138 percent. percent to 14.06 percent.
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