Stocks

HCL Tech hikes FII investment limit to 30%

R. Y. Narayanan Coimbatore | Updated on November 17, 2017 Published on October 12, 2012

Software major HCL Technologies Ltd (HCL Tech) has hiked the FII investment limit in its equity up to 30 per cent with effect from October 11.

Interestingly, while the promoters and others, including retail investors, have been paring their stake in the company, FIIs and Domestic Institutional Investors (DIIs) have been slowly ramping up their stake for the three consecutive quarters ended on June 30, 2012.

In an announcement to the stock exchanges, HCL Tech said that the limit for the purchase of shares under the Portfolio Investment Scheme (under Foreign Exchange Management Act, 1999) by the FIIs, through the primary market and stock exchanges, has been increased up to 30 per cent of the paid-up capital of HCL Tech. This higher limit would come into effect from October 11 as notified by the RBI.

FIIs stake

The FII stake in the company, as on June 30, 2012, was much below the enhanced limit, with their holding at 19.97 per cent of the equity. However, the FII stake has been slowly creeping up for the past few quarters.

While at the end of December 31, 2011, the FIIs held 18.85 per cent stake in the company, this moved up to 19.42 per cent at the end of March 2012 quarter and further to 19.97 per cent at the end of June this year.

Holding of DIIs

A similar trend was witnessed in the holding of DIIs, though their stake was far less compared to the FIIs. The DIIs have been steadily upping their stake in HCL Tech — from 8.24 per cent on December 31, 2011 to 8.4 per cent at the end of March this year and further up sharply to 9.51 per cent at the end of June this year.

But the promoters and other investors, including individual investors, have been reducing their stake in the company, according to the BSE data.

Promoters, other investors

The promoters’ holding, which was 64.18 per cent at the end of December 2011, was down to 63.77 per cent in the quarter ended March 31, 2012 and further down to 62.24 per cent at the end of June this year.

Other investors also were reducing their holding in the company from 8.73 per cent on December 31, 2011 to 8.41 per cent in the quarter ended March 31 this year and to 8.28 per cent as on June 30 this year.

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Published on October 12, 2012
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