State agencies steadily hike stake in GACL

Gujarat government-promoted agencies are steadily increasing their stake in the state-run alkali player, Gujarat Alkalies and Chemicals Ltd (GACL).

The promoter holding in GACL has jumped by 14 per cent since December 2012. In the last two months alone, the state-appointed agencies have hiked their stake by more than a quarter of percentage.

Government sources informed that the state finance department has directed Gujarat Maritime Board (GMB) and Gujarat State Investments Ltd (GSIL) to keep buying GACL shares at intermittent intervals.

GSIL's holding in GACL has increased from 17.39 per cent or 1,27,71,293 shares in June 2013 to 17.65 per cent or 12963119 shares as on August 22. GMB has also hiked its stake in GACL from 2.56 per cent or 1883200 shares in June end to 2.60 per cent or 1912138 shares now.

The total promoter holding in the chemicals major stands at over 41.85 per cent as on August 22, 2013, which is higher from 41.56 per cent at the end of June quarter.

As per the company's filing with the Bombay Stock Exchange (BSE), besides GMB, GSIL and the government of Gujarat, the promoter group includes Gujarat Industrial Investment Corporation Ltd, Gujarat Narmada Valley Fertilizers and Chemicals Ltd (GNFC), Gujarat Mineral Development Corporation (GMDC) and Gujarat Industrial Development Corporation Ltd (GIDC).

Notably, foreign institutional investors (FII) holding has nearly doubled from 2.69 per cent in December quarter to around 4.43 per cent in June quarter.

Domestic institutional investors' (DII) holding has fallen from 9.16 per cent in December to around 5.37 per cent in June quarter.

GACL shares have witnessed heavy volatility in the price movement on the stock exchanges.

Since June-end, the share prices have fallen by over 10 per cent so far, while it has gained over 10.34 per cent in last fortnight.