SoftBank on Friday sold 5.1 per cent stake worth Rs 1,043 crore of PB Fintech, the parent of Policybazaar, through an open market transaction.
SVF India Holdings (Cayman) offloaded 2,28,42,424 shares, amounting to 5.08 per cent stake in the company, according to block deal data available with the National Stock Exchange (NSE).
The entity is a subsidiary of SoftBank.
The shares were offloaded at an average price of Rs 456.4 apiece, taking the transaction value to Rs 1,042.52 crore.
Post the latest transaction, SoftBank’s shareholding in the company will reduce to 5.06 per cent from 10.16 per cent. Goldman Sachs Singapore Pte, Societe Generale, Morgan Stanley Mauritius and Max Life Insurance Company were among the buyers.
Shares of PB Fintech closed 5.21 per cent higher at Rs 485 per scrip on NSE.
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The Index Maintenance Sub-Committee – Equity (IMSC) of NSE Indices Ltd has decided to relax the eligibility criteria of Nifty equity indices and for replacement of stocks in various indices, as part of its periodic review. It has reduced the minimum listing history of constituents from three months to one calendar month.
The changes will be effective from March 31. Market sources say the relaxation will pave the way for the inclusion of Life Insurance Corporation (LIC), which plans to list its shares in March, in the benchmark Nifty 50 Index.
The government and LIC are going ahead with the listing of the latter’s shares, despite high volatility in the markets amid increasing global concerns over Russia’s invasion of Ukraine.
Investment banking sources said once the Sebi approves the issue, the IPO will open for subscription in the second week of March and trading will commence by the third week.
The government expects to mobilise Rs 63,000-66,000 crore from the proposed offer for sale (OFS) to meet its disinvestment target of Rs 78,000 crore for FY22. While LIC is yet to announce the IPO price, market estimates are that the IPO is likely to be Rs 2,000-2,100 per share.
Explained
Eye on Nifty 50 index
From March 31, minimum listing history of a constituent on NSE will be down to one month. This is likely to make LIC’s listing on Nifty 50 — NSE’s benchmark index — smoother.
An Edelweiss Alternative Research report said, “Despite being a lower float name, there is a medium to high probability of the stock (LIC) getting fast entry in the MSCI Index. As in the case of bigger issuances, the index provider does not compulsorily require minimum length of trading requirement or foreign inclusion factor (FIF) of 0.15.”
The key aspect to be kept on radar will be the issue size and the final listing market capitalisation, as anything below Rs 10.7 lakh crore valuation at listing can make the inclusion difficult. “Also, interim market size segment cut off will be an important level to watch out for,” the report said.
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In a trend that showcases promoters’ confidence in their company shares despite high valuations, private promoters of companies listed on the National Stock Exchange (NSE) have been buying shares of their companies and have increased their shareholding, even as the prices of stocks of these companies continued to rise and hit new highs over the last two quarters.
According to data compiled by primeinfobase.com, an initiative of PRIME Database Group, the shareholding of private promoters in companies listed on the NSE increased by nearly 50 basis points from 44.42 per cent at the end of June 2021 to 44.90 per cent on September 30, 2021.
Since March 2021, the aggregate holding of private promoters across more than 1,650 companies has gone up from 44.1 per cent to 44.9 per cent. This happened even as the share prices of a large number of companies have gone up significantly.
Some of the companies that witnessed an increase in shareholding by promoters during the September quarter include CESC Ltd, Adani Green Energy, APL Apollo Tubes, KPR Mill, Just Dial and LIC Housing, among others.
Indian promoters have been steadily raising their ownership in their companies over the last decade and have increased it by one third from 33.60 per cent on June 2009 to 44.9 per cent now.
While private promoters have been raising their stake, the shareholding of the foreign portfolio investors (FPIs) witnessed a decline in the September quarter. Shareholding of FPIs in NSE-listed companies came down to 21.47 per cent in the quarter ended September from 21.66 per cent in the previous quarter.
However, following a sharp rise in equity markets during the quarter, the total value of FPI holdings crossed Rs 50 lakh crore in 2021 and amounted to Rs 54.68 lakh crore.
Pranav Haldea, MD, PRIME Database Group, said that the 12.03 per cent rise in the value of FPI holdings from Rs 48.82 lakh crore as of June-end to Rs 54.68 lakh crore on September 30 is primarily driven by an extraordinarily buoyant secondary market during the quarter when Sensex and Nifty rose by 12.66 and 12.07 per cent, respectively.
In contrast to FPIs’ reduction in holdings, mutual funds (MFs) saw their shareholding in NSE-listed companies rise during the quarter to 7.36 per cent.
After hitting a high of 7.96 per cent in the quarter ended March 2020, MF holdings have been on a decline and had dropped to 7.25 per cent as of June 2021. “The share has increased on the back of a huge Rs 38,221-crore net inflow by domestic mutual funds during the quarter,” said Haldea.
Even in value terms, the holding of domestic MFs increased by 14.82 per cent to an all-time high of Rs 18.75 lakh crore as on September 30, 2021, from Rs 16.33 lakh crore on June 30, 2021.
Data shows that holding of retail investors (individuals with up to Rs 2 lakh shareholding) in companies listed on the NSE reduced marginally to 7.13 per cent as on September 30 from 7.18 as on June 30. However, in value terms, retail holding too hit an all-time high of Rs 18.16 lakh crore from Rs 16.18 lakh crore on June 30, 2021, following the rise in equity markets.
Even the percentage holding of the government (as a promoter) in companies listed on the NSE decreased to 5.56 per cent as on September 30, from 6.05 per cent in June. While all categories of shareholders have seen double-digit growth in the monetary value of their holding, Haldea said that government holding in companies listed on the NSE increased by just 3.87 per cent to Rs 14.16 lakh crore from Rs 13.63 lakh crore on June 30, 2021.
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Retail investors’ ownership in the companies listed on NSE reached an all-time high in the June quarter, mainly due to buoyant secondary market and a flurry of new listings, a report said on Monday.
As per primeinfobase.com, an initiative of Prime Database Group, the holding of retail investors — individuals with up to Rs 2 lakh shareholding — in companies listed on NSE reached a record high of 7.18 per cent in the said period, from 6.96 per cent in the March quarter.
In value terms too, retail holding in companies listed on the National Stock Exchange (NSE) rose to Rs 16.18 lakh crore during the quarter under review from Rs 13.94 lakh crore as of March 2021, indicating an increase of 16 per cent.
The benchmark indices Sensex and Nifty rose by 6.01 and 7.02 per cent, respectively, during this period.
“A buoyant secondary market and a flurry of new listings have helped in channelising retail savings into the capital market,” Pranav Haldea, Managing Director, Prime Database Group, said.
The analysis is based on shareholding patterns filed by 1,666 of the total 1,699 companies listed on NSE (mainboard) for the quarter ended June 30, 2021. As of July 31, as many as 33 companies were still to file their shareholding patterns.
However, the holding of domestic mutual funds in companies listed on NSE slipped marginally to 7.25 per cent as of June 2021, from 7.26 per cent as of March 2021.
According to Haldea, the holding of mutual funds has now declined for five consecutive quarters, after 24 quarters of continuous rise (from 2.80 per cent as of March 2014 to 7.96 per cent as of March 2020).
These trends also show the willingness and preference of individual investors to invest directly, rather than indirectly via mutual funds, he added.
LIC’s holding across 295 companies, where its ownership is more than 1 per cent, declined to 3.74 per cent as of June 2021, down from 3.83 per cent in March 2021, and from an all-time high of 5 per cent in June 2012.
In value terms, though, it reached an all-time high of Rs 8.43 lakh crore in the quarter ended June 30, 2021, an increase of 9.88 per cent over the previous quarter.
LIC also continues to command a lion’s share of investments in equities by insurance companies (76 per cent share).
The holding of domestic Institutional Investors (DII), which includes domestic mutual Funds, insurance companies, banks, financial institutions, pension funds, as a whole, also decreased to an 11 quarter low of 13.19 per cent as of June 2021 from 13.42 per cent in the preceding quarter.
Further, the shareholding of foreign portfolio investors (FPIs) also dropped to 21.66 per cent during the quarter under review from 22.46 per cent as of March 2021.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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