RIL leads in outflow of retail shareholders

Once a company that pitched its high number of retail shareholders and the number of families associated with it,Mukesh Ambani-owned,Reliance Industries has been witnessing a continuous decline in the number of its retail shareholders over the last three years.

Written by Sandeep Singh | Mumbai | Published: May 10, 2013 4:44:19 am

Once a company that pitched its high number of retail shareholders and the number of families associated with it,Mukesh Ambani-owned,Reliance Industries has been witnessing a continuous decline in the number of its retail shareholders over the last three years. The fall in retail shareholders (holding up to 500 shares) of 2.36 lakh in 2012-13 is the highest over the last seven years.

While Reliance has been a big loser,even other major Sensex companies have witnessed a decline in the number of their non-promoter non-institutional shareholders over the last one year.

For ICICI Bank the number of shareholders in the category has come down by 66,328. While HUL witnessed a rise in shareholders within this category from 3,28,499 in March 2012 to 3,45,645,the same for Infosys went down from 4,60,139 in March 2012 to 4,15,844 March 2013.

According to the data in the RIL’s annual report,the number of retail shareholders holding up to 500 shares in the company fell by 2,36,416 in 2012-13 from 32.68 lakh in March 2012 to 30.31 lakh in March 2013. The company has been witnessing a decline over the last three years and the fall in the number of such shareholders in 2010-11 and 2011-12 stood at 40,851 and 1,13,490,respectively.

The number of retail shareholders stood at 34.22 lakh in March 2010 and they now stand at 30.31 lakh. The total number of shareholders too have fallen from 35.6 lakh to 31.6 lakh in the same period.

There was also a significant decline in the number of shareholders holding between 5,001-10,000 shares in the company.

Over the last three years the shares of the company have not performed well losing its charm amongst the retail investors. While the share prices stood at Rs 990 per share 3-years ago,2010,the shares are still trading at levels below it and closed at Rs 818 on Thursday.

The shares hit a low of Rs 673.4 in June 2012.

“The price performance has been weak and the visibility or optimism around the company is not great and in such a scenario if the company provides an exit option,it makes sense for investors to go for it,” said a leading market expert who did not wish to be named.

RIL plans to invest $5 billion in KG-D6

New Delhi: With gas output from its flagship KG-D6 fields dipping to an all-time low,Reliance Industries Chairman Mukesh Ambani has said the company will invest over $5 billion in “a series of projects” to reverse the trend.

RIL and its British partner BP plc have submitted to the government plans to bring to production satellite fields in the eastern offshore KG basin block to raise output that has plummeted to less than 16 million standard cubic meters per day from about 64 mmscmd achieved three years ago. PTI

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