Top Ten On Institutional Investors

Bangalore-based pharma company, Strides Arcolab, is a company that institutional investors are highly bullish on. Institutional investors hold more than half of the total shareholding in the company.

Strides is on a high growth trajectory now. It has two business segments, viz. Pharmaceuticals and Specialty. Its exports revenues are very strong, at 96% of the total revenues. The company has seen good growth in the specialty segment, which is expected to continue in the coming years due to its strong product pipeline. It expects to launch about 30 products, which will bring in incremental revenues in this year.

9. Infosys Ltd.

Infosys, the second largest IT software company, is admired for its strong management and superior corporate governance. The company is mainly engaged in providing IT products and services for various sectors such as banking, financial services, manufacturing, media, airlines, telecommunications, etc.   Infosys recently came up with muted March 2012 quarter earnings. It also provided weak guidance for itself as well as the IT sector in FY2013. As per the latest shareholding pattern of the company, the promoters have a 16% stakeholding, whereas foreign institutions have the highest 39.02% holding.

8. Su-Raj Diamonds & Jewellery Ltd.

Su-Raj Diamonds & Jewellery is the first company in its industry that opted for a public issue in India. The core business activity of the company is the manufacture and export of gold, silver and platinum jewellery studded with diamonds, coloured stones as well as plain jewellery. It has excellent quality control, and its product design is one of the best in the Industry. The company crossed the revenue targets of Rs 3000 crore in FY10, Rs 4000 crore in FY11 and the Rs 5000 crore mark in FY12. FIIs have increased their stake substantially in the past 3 months, from 36.62 per cent in December 2011 to 58.45 per cent in March 2012.

7. PTC India Ltd.

Power Trading Corporation of India (PTC India) was established in the year 1999 by the Government of India, initiating a public private partnership. It is the leading provider of power trading solution in the country. Institutional investors have a stake of around 62.05 per cent in the company.

PTC has maintained a leadership position since its inception. The company is also an active participant on the Indian Energy Exchange, India’s first national level power exchange. It also has a listed subsidiary named PTC India Financial Services having a stake of around 60 per cent as on 31^st March 2012.

6. YES Bank Ltd.

Led by Rana Kapoor, YES Bank started its journey in 2004. The bank has a widespread branch network of over 350 branches across 200 cities, with over 600 ATMs and 2 national operating centers. It is recognised as being amongst the top and the fastest growing banks in India. The asset quality of the bank is the best in the industry, with the gross NPAs at 0.05 per cent of its advances. YES Bank was also the leading mover of the savings account interest rate deregulation, increasing the rates by 300 basis points to 7% p.a., which is highest among its peers.

5. ICICI Bank Ltd.

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ICICI Bank, India’s largest private sector bank in terms of total assets, ranks 5^th when it comes to total institutional investment. The total exposure of institutional investors in the shares of ICICI Bank stands at 62.56 per cent, as per the latest shareholding pattern filed for the March 2012 quarter. The bank is under the esteemed leadership of its MD and CEO, Chanda Kochhar, and enjoys strong management credentials. Apart from institutional investors, ICICI Bank is fancied by traders as it has good volatile movement (with a beta of 1.82) that helps traders to make money over a short term.

4. Federal Bank Ltd.

Federal Bank ranks fourth when it comes to institutional investment (around 62.56 per cent).The name Federal Bank was announced in 1947, prior to which it was known as Travancore Federal Bank. In 2010, the bank appointed Shyam Srinivasan as its MD and CEO, and since then, it has shown a stable performance. In March 2012, it announced a strategic initiative, opening 100 branches in a single day, which will spurt growth for the bank going ahead.

Infrastructure Development Finance Company (IDFC) ranks 3rd when it come to institutional investments. The total exposure of institutional investors in the shares of IDFC stands at 83.24 per cent, as per the latest shareholding pattern filed with the BSE for the March 2012 quarter. However, if we exclude the 17.28 per cent stake held by the Govt. of India, this comes to 65.96 per cent. IDFC is India's leading integrated infrastructure finance player, providing end-to-end infrastructure financing and project implementation services. The company's main business is to provide finance for infrastructure projects.

2. Southern Ispat & Energy Ltd.

Part of the Agarwal group, Southern Ispat And Energy is based out of Kerala and engaged in the manufacture of steel billets. The company was founded in 1995, and has diversified itself into a chain of businesses in the steel sector. It is all set to become the only integrated company manufacturing iron ore to machine flanges under one roof.

The company has planned to raise its total steel production to 0.13 million TPA over the next few years. To meet its raw material requirements, the company has laid out its plans for securing raw materials and integrating them backwards into the mining of iron ore, coal and chrome ore. It is in talks to acquire 50% stake in the Buxwaha iron ore mine spread over 150 hectares in Chattarpur, Madhya Pradesh. As per the latest shareholding pattern, the promoter stake in the company is only 1.5% but domestic institutions hold 72.71%.

1. Housing Development Finance Corporation Ltd.

Housing Development Finance Corporation (HDFC) commands a premium position as the most favoured investment option for institutional investors. As per the latest shareholding pattern, institutions hold around 86 per cent in the company, which truly reflects their confidence in the business and the management. HDFC was established in 1977, and is now a leader in housing finance. Despite the recent offloading of 9.86 per cent stake in HDFC by Citigroup, it still holds the numero uno position in terms of institutional investment.