Wednesday, January 25, 2012

Fedders Lloyd Sees Massive Sell by FII Swiss Finance Corporation

Fedders Lloyd Corporation Ltd (BSE: 500139, NSE: FEDDERLOYD) counter in NSE today witnessed a massive sell of 14.62 lakh shares by Swiss Finance Corporation (Mauritius) Ltd, amounting to 4.75% of the total shares in the company.

Fedders Lloyd is a leading air-conditioning products and services company in India, while Swiss Finance Corporation is an FII and subsidiary of Swiss banking giant, UBS AG.

Interestingly, 11.08 lakh shares or nearly 76% of the sold shares were picked up by none other than two promoter group entities, Lloyd Manufacturing Pvt Ltd and Renu Punj. With today’s buys, the total promoter group stake has risen from just over 38% to over 42.75%.

Though promoters upping the stake is a good signal, it is noteworthy that no institutional buyers had come forward to pick up major portions of today’s sell, even at these low levels.

As per the latest Share Holding Pattern (SHP) of Fedders Lloyd published in BSE for the 3rd quarter ending December 31st 2011, Swiss Finance held only 11.66 lakh shares or 3.79% in the company. Evidently, the FII had averaged during the recent steep fall in the scrip, and used the current rally to exit the counter.

The scrip had fallen from a 52-Week High of Rs. 99 on April 11th 2011 to a 52-Week Low of Rs. 48 on November 24th, amounting to a more than 51% fall. The company's Net Profit Margin had been steadily slipping through most of last year, with NPM now at just 4.27%. The company is yet to declare Q3 results.

Though today’s massive institutional sell-off was absorbed by the promoter group, it will be interesting to watch how any more institutional sells would be handled. Fedders Lloyd has a relatively high FII holding of 28.47%, with players like Citigroup (2.96% stake), Copthall (5.98%), CLSA (4.87%), Deutsche Securities (5.50%), and Morgan Stanley (5.60%) holding stakes as per the latest SHP.

While today's exchange of hands was executed at Rs. 55 a share, the Fedders Lloyd scrip closed the day at Rs. 57.10 in NSE, up by 2.24% from previous day's close of Rs. 55.85.


  1. i think its more of problame of Swiss Finance Corp than Lloyds....we know the condition of UBS in international market

  2. just look at the UBS results mentioned above, it is disatrous...