Small investors, HNIs hike Kingfisher stake; FIIs trim holding

Small individual investors and high net-worth individuals (HNIs) have continued their share buying spree in Kingfisher Airlines, despite the ailing carrier been grounded for nearly seven months after its licence was suspended.

However, foreign institutional investors (FIIs) reduced their exposure to the beleaguered airlines to 0.85 per cent at the close of last quarter ended March 31, from 1.07 per cent three months ago. The holding of domestic institutions has also came down during this period.

The high-networth individuals raised their stake in cash-strapped carrier to 16.58 per cent at the end of the March quarter from 15.74 per cent in the preceding three months, while holding of small individual investors rose to 20.59 per cent from 19.25 per cent, as per stock exchanges data. Small investors (defined as those holding up to Rs 1 lakh worth shares in a company), and HNIs (individuals with shares worth over Rs 1 lakh) have been raising their respective stakes in Vijay Mallya-led Kingfisher Airlines since April-June quarter of 2012.

Besides, the latest shareholding data of Kingfisher shows that the number of small individual and HNI shareholders have also increased considerably during this time.

The total promoter holding declined to 32.12 per cent in the January-March quarter from 35.83 per cent in December quarter.

The promoters have pledged 89 per cent of their shares with various lenders, leaving them with a non-encumbered stake of just 3.55 per cent.

The shareholding of institutional investors (insurance, banks and financial institutions) has also come down in the March quarter to 13.76 per cent from 14.13 per cent in the December quarter, data showed.

The stake of domestic institutional investors slipped marginally to 13.06 per cent in December quarter from 13.15 per cent in the preceding three months.

The operations of Kingfisher remains disrupted since September 30, first due to a strike by its engineers and pilots, and then the lockout declared by the management.

This was followed by suspension of its flying permit by Directorate General of Civil Aviation after the carrier failed to produce a plan to revive its operations.

Shares of Kingfisher have declined by 54 per cent during the quarter under review. The company’s scrip is currently trading at Rs 7 level.

The total number of small shareholders currently stand at 2.30 lakh against 2.22 lakh at the end of December 31, 2012 and the number of HNIs were 3,653 compared to 3,390 during the same period.

http://www.thehindubusinessline.com/markets/small-investors-hnis-hike-kingfisher-stake-fiis-trim-holding/article4657194.ece