The famous promoters of Infosys have steadily been reducing their stake. The combined promoters holding at the end of March 2012 in the index heavyweight stands at 16.04 per cent. They held 28.72 per cent stake in March 2002.
During the period, the Rs 5-paid Infosys jumped from Rs 256 (after adjusting for bonus and stock split) to Rs 2,402. It had hit a life-time high of Rs 3,499 last year. The company had given 3:1 bonus (three shares for every one held) in 2004 and a 1:1 offer in 2006. The company had hit the capital market in 1993.
Reduction of stake is quite prevalent among its promoters. From Mr Narayana Murthy to Mr Nandan Nilekani to Mr Gopalakrishnan and their family members, all have reduced their grip in the company.
Interestingly, Mr N.S. Raghavan and his family members have quit the company completely to pursue their own interest. They were holding about 4.85 per cent stake in Infosys. Mr Narayana Murhty launched Cataraman Ventures, a venture capital fund to help start-up companies.
Even as promoters cut stake in Infosys, foreign institutional investors and domestic institutions have reposed their faith in the company. Interestingly, FIIs holding at 39.02 per cent, is more than double that of promoters group. In all, 928 FIIs have exposure in the company. They held a stake of 36.59 per cent in 2002.
Mutual funds’ holding in the stock currently reduced to 4.69 per cent (from 7.39 per cent in 2002), while that of insurance companies increased to 11.83 per cent (2.03 per cent).
Retail investors, including HNIs, have largely maintained their holding to around 13 per cent.