FIIs hike stake in HDFC to record high of nearly 80%

The mortgage financier is also the first listed Indian company among 30 Sensex firms to have 80% shareholding by FIIs

Emerging as one of the most-liked stocks by foreign funds, mortgage giant Housing Development Finance Corporation (HDFC) has seen foreign investors raise their stake in it to a record high of nearly 80 per cent during the quarter ended March 2015.

The mortgage financier has also become the first listed Indian company among 30 Sensex firms to have around 80 per cent shareholding by foreign institutional investors (FIIs). Cumulative FII holdings in the company rose to 79.65 per cent in the January-March quarter this year from 78.49 per cent in the three months ended December last year, data from stock exchanges showed.

The shareholding of FIIs in HDFC has been steadily rising since September 2013.

The rise of FII shareholding in the mortgage lender, one of the highest among the country's 30 listed blue-chip companies, coincides with overall bullishness shown by foreign entities in the Indian stock market.

According to market experts, overseas investors have shown interest in HDFC because of the smart returns given by the company.

In May 2012, HDFC's board had approved raising the FII limit in the company to 100 per cent.

During the January-March quarter, FIIs have invested more than Rs 36,000 crore in Indian equities on the back of ongoing reform initiatives taken by the Central Government.

Besides, the overall holding of institutional investors also rose to 88.39 per cent during January-March quarter this year from 88.29 per cent at the end of December 31, 2015, mostly on account of additional share purchases by FIIs.

The domestic institutional holdings stood at 8.74 per cent as on March 31, 2015, down from 9.8 per cent in October- December quarter of 2014.

HDFC is scheduled to report its fourth quarter earnings on April 29.