Mauritius-based foreign portfolio investors (FPI) India Capital Fund has cut down its stake in Kirloskar Industries (KIL) by 2.14 percent, following the company’s move this month to operate as a Core Investment Company (CIC) like Tata Sons.

India Capital sold 2,70,031 shares in the open market, the company announced to the exchanges last week. KIL is promoted by brothers Atul and Rahul Kirloskar, the next generation of one of India’s oldest business families. Before the share sale, India Capital was holding 6.82 percent stake in KIL, which has now come down to 4.68 percent.

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The share price of KIL, which had touched a high of ₹1,975 on June 2, is down by nearly 30 per cent at ₹1,399. KIL recently sought shareholder approval to operate as a CIC, which has to follow the registration process and guidelines of the Reserve Bank of India (RBI).

64 CICs in India

There are only 64 CICs in India including Aditya Birla Capital, Ambadi Investments, Bandhan Financial Services, Bharati Telecom, Cholamandalam Financial Holdings, Equitas Holdings, Fortis Healthcare Holdings, GMR Airports, IL&FS, L&T Finance Holdings, Reliance Capital, Tata Capital, Tata Sons.

CICs basically act as holding companies for other group companies wherein they hold take.

The Pune-based Kirloskar family are going through a dispute over a deed of family settlement. Sanjay Kirloskar is on the one side, and Rahul and Atul on the other. The Supreme court has asked the brothers to try and settle the dispute through mediation.

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