Fiis Ratchet Up Tata Engg Pie By 7% In 9 Months

Foreign institutional investors (FIIs) have hiked their holding in Tata Engineering by 6.77 per cent to 13.34 per cent in the last nine months.

Between April and December, institutional holding has also increased from 30.55 per cent to 35.39 per cent, primarily on the back of a jump in FII holding.

The shareholding pattern of Tata Engineering as on December 31 indicates that promoters have a 25.65 per cent stake in the company, mutual funds and Unit Trust of India 6.3 per cent, banks, financial institutions (FIs) and insurance companies 15.75 per cent, FIIs 13.34 per cent, private corporate bodies 11.48 per cent, non-resident Indians/overseas corporate bodies 1.22 per cent, Citibank NA New York 7.33 per cent and public at 18.93 per cent.

Analysts said FIIs have invested in the stock due to the strong performance of the company's car division, along with significant deleveraging of its balancesheet after the rights issue.

Analysts expect the company to be close to break-even for the quarter ended December and post positive figures by the March quarter.

The scrip price touched a high of Rs 118.10 before closing at Rs 116 today on the Bombay Stock Exchange (BSE) and jumped to Rs 116.80 on the National Stock Exchange (NSE). Volumes on BSE and NSE were significant at 9,18,718 and 14,46,467, respectively.

As per data released by the Society of Indian Automobile Manufacturers, Tata Engineering's vehicle sales rose 4.54 per cent during December. This included a 6.71 per cent rise in medium and heavy vehicle sales to 5,104 units and a 66 per cent jump in Indica sales to 3,787.

However, sales of light commercial vehicles fell 29.3 per cent to 2,507 units, while sales of utility vehicles fell 10 per cent to 1,906. The company has been focusing sharply on its product portfolio, with an aim to add value to its offerings.

According to analysts, a strong performance by the newly launched Indica V2 model and a recovery in sales of commercial vehicles led to buying pressure at the counter.