Wednesday, July 4, 2012

OnMobile Stake Tripled by HDFC MF

Naresh Malhotra, Director,
OnMobile Global Ltd.

By Special Correspondent:
02:14 AM, Wednesday, 4th July 2012:

OnMobile Global Ltd (BSE: 532944, NSE: ONMOBILE) counter in NSE on Tuesday witnessed a major buy of 17.25 lakh shares by HDFC Mutual Fund.

The deal was disclosed after trading hours on Tuesday, at National Stock Exchange. This is the second day in which HDFC MF is buying in the counter, on behalf of its Growth Fund.

StockExplain News had earlier reported on HDFC MF’s buy of 7.05 lakh shares on Monday, which amounted to a 0.61% stake in this Indian mobile VAS company with a global footprint.

Tuesday’s buy of 17.25 lakh shares makes up a 1.50% stake, and in net effect, HDFC Mutual Fund has more than tripled its stake on Tuesday to 24.30 lakh shares or 2.11% stake.

With this buy, HDFC MF has become the fourth largest non-promoter shareholder in OnMobile Global, behind ICICI Prudential Life, Amansa Investments, & Birla Sun Life Insurance.

The buy was at Rs. 30.97 a share, up by 4.56% from the previous day’s buy at Rs. 29.62 a share.

While there were significant identified sellers on Monday, there were no such counterparty sellers on Tuesday, thereby hinting that the massive selling pressure in the counter during the past three trading days is now easing.

The OnMobile Global counter also had a strong general rebound on Tuesday, with the scrip going as high as 8% intraday, before closing up by 5.43% in NSE. 

Two of the largest sellers during the past three sessions, SmallCap World Fund and Kotak Mahindra Prime, made mandatory disclosures on Tuesday, which reveals that for SmallCap it is almost a full exit, while the Kotak arm still has a significant stake in the company, which is likely made up of pledged shares by a promoter group entity.

Three of the largest buyers that have emerged recently – Barclays, Goldman Sachs, & HDFC MF – have together pumped in Rs. 13.31 crore, of which more than half is by the HDFC arm.

Though these identified buys are relatively smaller than the massive identified sells witnessed in the counter recently, the entry by two of the most well-known FIIs and a reputed DII is signaling that discerning investors are willing to look beyond the serious corporate governance doubts that have surfaced at OnMobile Global during the past few months.

On Tuesday, the stock closed at Rs. 31.05 in both BSE & NSE, up by 5.25% and 5.43% respectively.