Monday, January 23, 2012

Cals Refineries' Share Holding Pattern - Changes in Q3 FY’12

Cals Refineries’ (BSE: 526652) Share Holding Pattern (SHP) for the quarter ended December 31st has been made available to investors today, and there are a few changes worth noting in the latest SHP.

The most significant development is that the process of GDR offloading (cancellation) has come to a pause, as shown by the steady number of remaining GDRs in Q2 and Q3, amounting to 27.08% of the total number of shares. Evidently, the SEBI order against Cals on such silent dumping has had some effect on the concerned operators, even though that offloading process itself was not banned by the regulator.

The total promoter holding of Cals Refineries remained unchanged in Q3 at 16.30%. Of this, promoter group family member Gagan Deep Kumar Rastogi, who is an NRI, holds 13.38% through GDRs. The remaining 2.92% promoter stake is directly in Cals’ Indian shares, which is split between two promoter group companies - Nyra Holdings Pvt Ltd’s 2.81% stake and SRM Exploration Pvt Ltd’s 0.10% holding.

StockExplain had earlier reported that there is a power struggle between the Rastogis and former co-promoters Malhotras for the control of Spice Energy Pvt Ltd, which is the entity controlling Nyra Holdings, as well as the Group's other listed firm, SRM Energy Ltd. The case is now before India's Company Law Board (CLB), a quasi-judicial body.

The other major change in Q3 SHP is that Merrill Lynch Capital Market has apparently sold off significant shares, as this FII is no longer listed under investors holding more than 1% shares of Cals. SEBI had in its investigation found that Merrill Lynch Capital Market was one of the FIIs systematically cancelling and selling off GDRs with the help of a domestic client.

Perhaps reflecting the selling by Merrill Lynch and others, the public institutional holding in Cals Refineries stands reduced at 0.75% in Q3 from 2.05% in Q2. Most of this selling seems to have been bought by retail investors, as total public non-institutional holding (made up by retail investors, body corporates, NRIs etc but excluding public GDRs) has risen from 67.95% to 69.25%.

Both the retail holders holding above 1 lakh nominal capital and below 1 lakh nominal capital show a rise. 

Earlier, in Q2, the other FII involved in the GDR cancellation affair, Taib Securities had disappeared from the list of investors holding more than 1% shares of Cals Refineries.

Another notable seller in Q3 is Maniput Investments Pvt Ltd, which had bought significant shares in Q2, amounting to 1.21% of total shares. Maniput is a group company of Mumbai based brokerage, Magnum Group.

Instead, another buyer has emerged in Q3, SPA Securities Ltd, whose holding now stands at 1.05%. SPA is a financial services house doing securities broking, merchant banking, wealth management, financial advisory, corporate finance, risk management and insurance broking. 

A quick search on SPA’s other major holdings in the Indian equity market, didn’t return any results.

Cals Refineries’ Director Board had recently co-opted Sameer Rajpal, a PIO and Canadian citizen, as an Independent and Non-Executive Director, most probably in the vacancy left by Independent Director BS Rao’s exit.

It was also disclosed by Cals that Sameer Rajpal holds a 0.34% stake in the company bought at Rs 0.42 through market purchases, which indicates that he is likely to have bought it before the SEBI order restraining Cals against further equity expansion came.

The total number of shareholders in Cals increased slightly in Q3 - by 890 shareholders - to reach 1,91,587 members.

The SEBI order against Cals Refineries and other listed entities was recently confirmed by the regulator, and the company and its investors are now awaiting the final order from SEBI, which the regulator has promised to expeditiously deliver.

Cals Refineries closed today’s trade at Rs. 0.22 down 4.35%, and led the volume chart in BSE which is usual for the stock due to its relatively large equity base and large free float despite its penny-stock nature.


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  2. Stockask - Thank you for the continued interest in the scrip and the interesting insight -Amar


  3. Great Job StockAsk Ji