Foreign Institutional Investors’ holding in Mahindra Satyam has crossed 20 per cent mark for the first time since the company was hit by the accounting scandal more than three years ago.
FIIs more than doubled their holding in Mahindra Satyam during 2011-12. The total FII holding in the company stood at 20.81 per cent as on March 31, 2012, against just 8.92 per cent a year ago.
Domestic institutional investors’ holding also rose from 3.71 per cent to 7.03 per cent during the fiscal year ended March 31, 2012. The major domestic and foreign investors in the company include LIC, Reliance Mutual Fund, Indus Capital Advisor UK, Goldman Sachs and Abu Dhabi Investments Authority.
The erstwhile Satyam Computer, which became Mahindra Satyam after being acquired by the diversified conglomerate Mahindra group, used to figure among the most favourite Indian IT stocks for the overseas investors ever since its inception.
However, foreign investors dumped their holdings in the company after an accounting fraud broke out in January 2009.
While FIIs held close to 50 per cent stake in the company on an average prior to the scam, their stake came down to as low as 4.5 per cent by June 2009. However, a successful turnaround by its new owners and management seems to have attracted the foreign investors as well in the past few quarters.
While FIIs held 8.92 per cent as on March 31, 2011, it rose to 12.95 per cent by June, 15.21 per cent by September and to 17.13 per cent by December 2011.
As per the latest shareholding pattern of the company, the FII holding has now crossed 20 per cent — the highest since December 2008, when their holding was 44.82 per cent.