Mauritius-based FIIs lose clout on D-Street in India
The aggregate value of 61 Mauritius-based FIIs' large stakeholding (of more than one per cent of a company's paid-up equity) in NSE-listed companies has fallen by 18 per cent, in a 9-month period, from Rs 83,854 crore on October 26, 2010 with respect to their quarter-end shareholding of September 2010 to Rs 68,351 crore on July 25 this year with respect to their quarter-end shareholding of June this year.
This 18 per cent fall was much more than that of the benchmark equity market index, S&P CNX Nifty, which saw a decline of 6.6 per cent from October 26, 2010 last year to July 25 this year.
In addition, the proportion of the Mauritius-based FIIs large holdings' value to the value of all holdings of all FIIs too fell from 8.5 per cent to 7.2 per cent in the analysed period.
These two trends indicate a combination of sell-off by Mauritius-based FIIs and a higher decline in the value of their holdings. The analysis covered Securities and Exchange Board of India-registered FIIs and FII-sub accounts, which had word 'Mauritius' in their names as shareholders in the quarterly shareholding pattern disclosures by listed companies to the stock exchanges.
Of the current Rs 68,351 crore worth of market holding by the 61 Mauritius-based FIIs, the largest 10 (see table) accounted for 78 per cent, while in October last year the then-largest 10 had accounted for 83 per cent of total holding of Rs 83,854 crore.
Among the Mauritius-based FIIs, HSBC Global Investment Funds Mauritius (HSBC GIFM) , a sub-account of main FII entity, HSBC Global Investment Funds, had the largest current holding value of Rs 12,221 crore across 30 companies, accounting for 17.87 per cent of their aggregate holding. Its largest current holdings were in HCL Technologies, to the tune of Rs 2,073 crore, and in Maruti Suzuki, worth Rs 2,014 crore.
HSBC GIFM was also the largest among Mauritius-based FIIs in terms of their holdings in October last year. It then had investments in 35 listed companies worth a total of Rs 16,034 crore, or 19.18 per cent of aggregate holding of all Mauritius-based FIIs.
The second largest Mauritius-based FII holding value was through a combination of the holding by two connected FII entities, Citigroup Strategic Holdings Mauritius and Citigroup Holding Mauritius, the latter being a sub-account of main FII entity, Citigroup Global Markets. This combination was invested in just one company, Housing Development Finance Corporation, with a 9.88 per cent stake in the company valuing Rs 10,287 crore on July 25.
Another FII entity, connected with the Citigroup, Citigroup Global Markets Mauritius, had investments in 48 listed companies to the tune of Rs 2,373 crore on July 25. It was the ninth-largest among Mauritius-based FIIs.
The combined effect of three Mauritius-based FII sub-accounts of Malayasia-based Khazanah Nasional Berhad made it be among the largest Mauritius-based FIIs. The three FII sub-accounts had investments in just one company each -- Bisikan Bayu Investments Mauritius held Rs 208 crore worth of shares in Apollo Hospitals, Sipadan Investments (Mauritius) held a stake worth Rs 1,863 crore in IDFC and Titiwangsa Investments Mauritius had investments in Yes Bank to the tune of Rs 489 crore.
By mydigitalfc.com
