FIIs and Promoters Cut Stakes in KFin, R R Kabel, IRB Infrastructure, and Great Eastern Shipping

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FIIs and Promoters Reduce Stakes in Key Indian Stocks Amid Market Volatility

Team FS

30/May/2024

Key Points:

KFin Technologies Ltd shares fell 7.4% after a significant block deal involving General Atlantic Singapore Fund.
R R Kabel Ltd shares gained 6% post block deal with TPG Asia VII SF Pte Ltd. reducing stake.
IRB Infrastructure Developers Ltd shares dropped 13% following a large block deal.
Great Eastern Shipping Company Ltd shares fell 2.1% after Nalanda India Fund Limited divested 1.4% of its stake.

Foreign Institutional Investors (FIIs) and promoters have recently reduced their stakes in several prominent Indian companies, contributing to significant market movements. FIIs, which include entities like pension funds, investment trusts, and asset management companies, play a crucial role in adding liquidity and expertise to the Indian stock market. The recent divestments in companies such as KFin Technologies Ltd, R R Kabel Ltd, IRB Infrastructure Developers Ltd, and Great Eastern Shipping Company Ltd have impacted their stock prices and market perceptions.

KFin Technologies Ltd

KFin Technologies Ltd is a leading financial services platform known for providing a range of services to asset managers and corporate issuers. The company's shares fell 7.4% to ₹689.25 after a significant block deal. The company has a market capitalization of ₹11,889 crores. On May 30, KFin Technologies witnessed nearly 5.9% of its shares traded in a ₹720-crore block deal.

General Atlantic Singapore Fund, a global private equity firm, was reported by CNBC-TV18 to be considering selling a 4.1% stake in KFin Technologies, potentially increasing to 6.8% with the initial offering valued at ₹500 crore, possibly reaching ₹833.3 crore. This move follows a previous sale in December, where General Atlantic, the promoter of KFin Technologies, divested approximately 10% of the company’s equity, amounting to a transaction worth ₹851 crore.

Despite the recent decline, KFin Technologies Ltd shares have gained 31% in the last six months and 111% over the past year.

R R Kabel Ltd

R R Kabel Ltd, a key player in India’s consumer electrical industry, saw its shares gain 6% to ₹1,820.80 after a block deal. The company has a market capitalization of ₹19,636 crores. Significant trading activity was noted on May 30, with around 56 lakh shares changing hands, representing about 5% of the company’s total equity.

TPG Asia VII SF Pte Ltd., an FII, planned to divest up to 5% of the company’s equity. The offered floor price per share was ₹1,700, marking a 1.1% discount from the previous day’s closing price, with the total offer size estimated at ₹957.7 crore.

R R Kabel Ltd shares have increased 7% in the last six months and 45% over the past year.

IRB Infrastructure Developers Ltd

IRB Infrastructure Developers Ltd (IRB), known for being India’s largest private toll road and highway infrastructure developer, experienced a 13% decline in its share price to ₹63.30 after a substantial block deal. The company has a market capitalization of ₹39,778 crores.

Reports indicated that 300 million shares were traded, with speculation pointing to IRB Holding Pvt Ltd and Deepali Virendra Mhaiskar as potential sellers. They aimed to sell up to 4% of the company’s equity capital within a price range of ₹63 to ₹72.70 per share. Promoter Deepali Virendra Mhaiskar held a 0.27% stake, while the promoter group IRB Holding Pvt Ltd held 33.2%.

IRB Infrastructure Developers Ltd shares have gained 78% in the last six months and 134% over the past year.

Great Eastern Shipping Company Ltd

Great Eastern Shipping Co. Ltd, involved in shipping and offshore business, saw its shares fall 2.1% to ₹1,033.50 after a block deal. The company has a market capitalization of ₹15,197 crores. On May 29, Ghisallo Master Fund LP purchased approximately 0.7% of the company through a bulk transaction, buying around 8 lakh shares at an average price of ₹1,045 each.

Conversely, Nalanda India Fund Limited, an FII, divested about 1.4% of its stake, selling approximately 20 lakh shares at an average price of ₹1,045.14 per share. As of March 30, Nalanda India Fund Limited held a 7.37% stake in the company.

Great Eastern Shipping Company Ltd shares have gained 18% in the last six months and 51% over the past year.

In conclusion, the recent stake reductions by FIIs and promoters in KFin Technologies, R R Kabel, IRB Infrastructure, and Great Eastern Shipping reflect the dynamic nature of the Indian stock market. These movements are essential for market participants to monitor as they indicate changes in investor sentiment and market strategies.

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