Institutional investors such as mutual funds (MF) and insurance companies seem to lap up shares of Reliance Industries Ltd (RIL) as their holdings in the company has grown to a record high.

In the process, the market value of institutional holding in RIL has grown by more than Rs 1,500 crore.

Despite a dismal performance of the stock, in comparison to the broader market trends, MFs and government and private insurers have raised their holdings in the company over the past six months. The stock has fallen by over 6 per cent over the past one year, as against a gain of nearly 7 per cent in the two benchmark indices — Sensex and Nifty.

However, the changes in RIL shareholding pattern indicate that the institutional holding has seen an uptick after RIL announced a partnership with global energy giant BP earlier this year.

The combined institutional holding in RIL, comprising of foreign institutional investors (FIIs), insurance companies and mutual funds, has increased to 23.48 per cent, from about 22.96 per cent at the beginning of this year. Taking into account RIL's market capitalisation of Rs 3,09,010 crore, the value of institutional holding has grown from about Rs 71,000 crore to more than Rs 72,500 crore.

The holdings of domestic mutual funds and insurance companies are at their highest level in the company.

While holding of private insurance companies increased from 3.02 per cent to 3.52 per cent since January, that of government insurance company LIC has risen from 7.81 per cent to 7.92 per cent.

MF holdings have also increased from 2.26 per cent to 2.51 per cent, although the cumulative FII holding has marginally fallen from 17.68 per cent to 17.45 per cent.

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