Tuesday, February 21, 2012

Eveready Sees Continued Selling by the FII, Capital Group

By Staff Reporter:

Eveready Industries India Ltd (BSE: 531508, NSE: EVEREADY) on Tuesday witnessed massive sells of 14.81 lakh shares by the FII Group, Capital Group of Companies, amounting to 2.04% of the total shares in the company.

On Monday, StockExplain had reported that American Funds, a Capital Group company had sold off 8.59 lakh shares amounting to 1.18% of Eveready on Friday, the last trading day before the Indian holiday on Monday.

Tuesday’s bigger sell reveals that Capital Group is continuing to offload Eveready shares in high volumes. Capital Group arm, American Funds, is the second largest non-promoter investor in Eveready Industries India.

Tuesday’s sells occurred in both NSE & BSE, with Capital World Growth & Income Fund offloading 9.70 lakh shares in NSE, and American Funds Insurance Series selling 5.11 lakh shares in BSE.

As on Friday, interestingly, there were no identifiable institutional buyers or promoters, as counterparties to both the sells, which means that the massive sale was picked up by the wider market.

And again as on Friday, despite the huge sells, Eveready soared 5.62% in NSE on Tuesday. The offloads by Capital Group was at an average price of Rs. 27.86 or when the scrip was up by 4.35%. 

On Friday, Eveready had closed up by 6.80%, while American Funds had sold off when the shares were up by 6.32%.

The FII seems to have an uncanny ability in getting best prices for its massive sells, even when there are no identifiable institutional buyers for their sells.

Capital Group’s continued sell off is likely to have an impact on Eveready counter, as, with a 6.01% stake, it is one of the largest non-promoter investors in Eveready Industries India. Other major DIIs and FIIs in Eveready include, HSBC, LIC of India, ICICI Prudential FMCG Fund, UTI Master Value Fund, ICICI Prudential Discovery Fund, Macquarie Bank, and General Insurance Corporation of India.

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