Nomura exits, Citibank enters and domestic MFs stay put

On May 27, 2018 through a filing with the stock exchanges, Manpasand Beverages Ltd informed that the company’s statutory auditors have resigned with effect from May 26 and that the company has appointed a new auditor.

Written by Sandeep Singh , Sunny Verma | New Delhi | Updated: July 9, 2018 3:00:58 am
Nomura exits, Citibank enters and domestic MFs stay put Deloitte Haskins & Sells quit in May citing non-co-operation on sharing data

While Nomura Group fully exited by selling its 4.86 per cent holding in Manpasand Beverages after the company’s statutory auditor — Deloitte Haskins & Sells — quit as auditor of the company in May 2018 citing non-co-operation from the beverage maker on sharing certain data, the company has not only seen domestic mutual funds stay put with their investment in the company but also saw entry of a large investor in the form of Citibank N.A in the company.

According to the latest shareholding data for the quarter ended June 2018, Nomura Group that held an aggregate of 4.86 per cent shares in Manpasand Beverages (as of March 2018) through Nomura Indian Investment Fund (2.43 per cent); Nomura Trust and Banking Co (1.38 per cent) and Nomura Funds Ireland (1.05 per cent), did not held any stake in the company in the quarter ended June 2018. Other than Nomura, Parvest Equity India that held 1.07 per cent stake in the company till March 2018,also reduced its holding and its name was no longer there in the shareholders list filed with the Bombay Stock Exchange. It is important to note that names of investors who hold more than 1per cent are only made public.

While the exit of Nomura and Parvest Equity amid the weak sentiment on the company following the exit of statutory auditors on May 26, 2017, saw a sharp erosion of around 65 per cent in the share price of the company (From Rs 431 per share on May 25 to Rs 155 on July 6, 2018), a large number of investors including the domestic mutual funds stayed invested and new ones have come in.

Citibank N.A whose name does not figure among the Manpasand’s shareholders in the quarter ended March 2018, held 1.14 per cent stake at the end of the June quarter. While body corporates increased their holding from 1.85 per cent in March to 2.89 per cent in June, retail investors holding share capital of up to Rs 2 lakh saw their holding jump from 2.49 per cent in March 2018 to 6.19 per cent in June 2018.

Mutual funds held their ground too. According to the latest shareholding pattern, while ICICI Prudential MF continued to hold 1.04 per cent in the company, SBI Mutual Fund saw its holding rise from 4.4 per cent at the end of March 2018 to 4.5 per cent in June 2018. The holding of Motilal Oswal MF came marginally down from 5.49 per cent in March to 5.28 per cent in June.

Among other FPIs, while New Horizon Emerging markets fund stood its ground and held 2.62 per cent stake in the company that it held in March, Baron Emerging markets fund trimmed its holding down from4.97 per cent in March to 3.62 per cent at the end of June 2018.

Venture capital investor SAIF Partners, the single largest public shareholder in Manpasand Beverages continued to hold 17.57 per cent stake in the company.

On May 27, 2018 through a filing with the stock exchanges, Manpasand Beverages Ltd informed that the company’s statutory auditors have resigned with effect from May 26 and that the company has appointed a new auditor.

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