Wednesday, March 7, 2012

HDIL Sees Further FII Buzz – Merrill Lynch Buys for Rs. 25.44 Crore

Sarang Wadhawan,
Vice-Chairman & MD,
By Staff Reporter:

Realty major HDIL (BSE: 532873, NSE: HDIL) on Tuesday saw a significant buy of 23.70 lakh shares by the Foreign Institutional Investor, Merrill Lynch Capital Markets Espana, which amounts to around 0.57% of the total shares in the company. The noteworthy buy was at Rs. 107.36 a share, making the deal worth Rs. 25.44 crore.

Merrill Lynch Capital Markets has bought this stake in NSE.

Earlier, StockExplain had reported that Housing Development & Infrastructure Ltd (HDIL) had witnessed a significant buy of 22.15 lakh shares by the FII Goldman Sachs Investments Mauritius I Ltd, which came up to around 0.53% of the total shares in the company. This buy into HDIL was at an average price of Rs. 97.80 and was worth Rs. 21.66 crore.

Both deals have happened within a week’s time. As was the case with the first buy, the massive buy  by Merrill Lynch on Tuesday was not against any selling by any identified institutions or promoters, but probably picked up from the wider market.

HDIL had rallied till Rs. 135.40 after Goldman Sachs’ buy, but later corrected to less than Rs. 110 level, where this second buy has occurred. 

While expected favourable building regulations were thought of as behind Goldman Sachs’ buy, an additional buy trigger has happened recently to probably cause the buy by Merrill Lynch. 

As promised soon after Q3 results, HDIL made a jumpstart to its debt reduction program when it reportedly raised Rs. 900 crore by selling a 2 acre Mumbai land parcel to Adani Group.

Institutional holders in HDIL include Platinum Investment Management Ltd, Orbis Sicav Asia Ex-Japan Equity Fund, Fidelity Management and Research Ltd, Copthall Mauritius Investment Ltd, CLSA Mauritius Ltd, Stichting Pensioenfonds ABP, Fidelity Investment Trust, Credit Suisse Singapore Ltd, and ICICI Prudential Life Insurance Company Ltd.

Also Read Related Story: HDIL Bought Significantly by Goldman Sachs, Despite Poor Q3

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