The Hindu Business Line : Insiders on buying spree; little selling last fortnight

Mumbai, Dec. 1 When equities are down, it is a good time to buy, not only for the public and for institutions but also for the company insiders who know their own entities’ strengths and weaknesses better than any other investor group.

Over the past seven days, the secondary market has seen a lot of buying by “insiders” in stocks of their own companies. Sell side orders by insiders have been a trickle in comparison, BSE insider trade data shows.

Around the beginning of November there were a lot more sell orders reported by insiders.

For the period November 17-25, the total number of buy orders by insiders on any particular trading day ranged from 40 to 65, against less than 10 sell orders.

On November 25 there were 53 buy orders by insiders in various companies, but only three sell orders (they were in Kingfisher Airline, Adhunik Metaliks and Gokul Refoils).

On November 24 there were 61 buy orders against just two sell orders (in Dabur India and India Infoline).

According to SEBI regulations, promoters can now raise their stake up to 75 per cent without triggering the takeover regulations, as compared to 55 per cent limit earlier.

However, promoters can only raise their stake by 5 per cent annually through the creeping acquisition route.

Inside players

Companies where there was regular buying in November by their own promoters or other insiders included Larsen & Toubro (CMD Mr A.M. Naik), Gitanjali Gems (Mr Mehul C. Choksi), Deccan Chronicle (Mr T Venkatram Reddy, Mr T. Vinayak Ravi Reddy and Mr P.K. Iyer), Gati (Mr Mahendra Kumar Agrawal), Mount Everest Mineral Water (Tata Tea), and Subex (Mr Subash Menon).

Tata group companies have raised their stake in Mount Everest Mineral water to 35.94 per cent, the group had acquired 24 per cent stake in the company last year in June.

Mr Mehul C. Choksi’s stake in Gitanjli Gems is now 42.34 per cent.

HSBC Securities bought 1.44 crore shares of IL&FS Investsmart in November. Earlier in the year, HSBC acquired controlling stake in the company and had also successfully completed its subsequent open offer.

Related Stories:
‘Insiders’ take advantage of low stock prices
Insider ‘buys’ in falling market

More Stories on : Stocks | Stock Markets

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page