It seems domestic insurance behemoth LIC and retail investors have turned savvy when it comes to investment in Infosys. When the stock price zoomed last quarter, they booked profits.
Had LIC held on to those shares, its wealth would have been eroded by Rs 450 crore on Friday, as the stock slumped 21 per cent to Rs 2,295.45 from Rs 2,917.85.
Stake-holding
LIC has cut its stake in the IT major to 5.96 per cent (3.42 crore shares) during the January-March period, from 7.24 per cent (4.15 crore shares) it had held at the end of December 2012.
LIC’s holding in Infosys had gone up during the preceding three quarters, according to the data available with the stock exchanges. It held 4.92 per cent stake at the end of March 2012 that went up to 7.24 per cent by this March.
Like LIC, over 54,000 retail investors also made a smart exit in Infosys in the March quarter.
At the end of September 2012, the number of retail investors in Infosys stood at 4.49 lakh, which increased to 4.58 lakh at the end of December.
But, as the stock price jumped in the last quarter, over 54,000 investors booked profits and exited from the company. The number of retail investors currently stands at 4.03 lakh towards the end of March 2013.
Even 33 high net worth individuals – holding nominal share capital up to Rs 1 lakh – have exited from Infosys in the March quarter.
Small retail investors’ holding dipped to 7.42 per cent at March end from 7.97 per cent (December end) while HNIs’ slipped to 3.76 per cent (4.54 per cent).
Affected investors
Then who were the losers? Vanguard Emerging Markets, Government of Singapore and Abu Dhabi Investment Authority have increased their exposure marginally in the IT major.
LIC generally invests in companies with long-term perspective. However, with so many disinvestment proposals, it is raising funds by paring stake in its existing investments, to participate in them, said an analyst who works with a Mumbai-based brokerage firm.