FIIs pump in Rs 3,500 crore through 62 bulk deals in April, May
Mumbai, June 01: With FIIs getting back the voracious appetite for Indian stocks, they have put in over Rs
3,500 crore through just 62 bulk deals on the Bombay Stock Exchange in the first two months of the current
financial year.
According to an analysis of bulk deals on the exchange in April and May this year, Foreign Institutional
Investors (FII) transacted as many as 62 bulk deals buying shares worth Rs 3,516.61 crore, with the biggest
deal being the sale of over five per cent stake in DLF for Rs 2,106 crore.
Three foreign institutional investors -- Deutsche Securities Mauritius, Euro Pacific Growth Fund and
Copthall Mauritius Investment -- invested as much as Rs 2,106.1 crore in DLF for buying 9.15 crore shares
representing 5.39 percent stake in the realty firm last month.
A bulk deal refers to a transaction which involves buying or selling of more than 0.5 percent of the number
of equity shares of any listed company.
Other key bulk deals in the period include those of private sector lender HDFC and commercial vehicle
maker Eicher Motors.
FIIs have turned positive from the starting of the current fiscal year, pouring in Rs 6,500 crore in April and
Rs 20,117 crore (USD 4.1 billion) in the month of May, making the total of USD 4.2 billion (around Rs
20,473 crore) to date.
Other FIIs which invested in the stocks include Goldman Sachs Investment Mauritius, Sansar Capital
Mauritius and Deutsche Securities Mauritius.
The stocks which saw buying from the FIIs are Eicher Motors, Vijay Mallya-led United Breweries, HDFC,
Aban Offshore, Adlabs Films, Merk, HDFC Bank.
Meanwhile, according to a recent research report, domestic mutual funds are shying away from bulk deals
involving large chunks of shares while investing in equity markets as they prefer to retain the confidentiality
of transactions.
According to data compiled by SMC Capitals, during the period from 2006 to April 2009, the volume traded
on the bulk deal counter of the stock exchanges stood at Rs 5,00,500 crore, but the mutual funds accounted
for just three percent of the total transactions.
Bureau Report