FPI shareholding in Reliance Industries at all-time high
Despite the recent lull in stock market bellwether Reliance Industries Ltd (RIL), the shareholding of foreign portfolio investors (FPIs) rose to a record 24.9%, according to Capitaline.India’s biggest company by market capitalisation, RIL has become attractive for FPIs owing to the rising contribution of consumer-facing businesses to overall revenues, zero net debt on the lines of global technology companies, investments in alternative energy and a target to turn net carbon zero by 2035.Over the past 10 years, FPIs average stake in RIL was 20.7% which increased to 25.6% at the end of March 2021 after considering paid share of rights issues, according to an Economic Times report. Among major FPI contributors include Euro Pacific and the Government of Singapore with a shareholding of 2.7% and 1.2% respectively.As of April 15, 2021, FPIs stake in Reliance stands at 8% of their total portfolio value of Rs 40.6 lakh crore. On the other hand, domestic mutual funds have decreased their shareholding in RIL stock to an 11-quarter low of 4.3% in March from a high of 5.3% in June 2020.After a four-year run, RIL stock has underperformed the benchmark Nifty50 index by 36% in the past six months. RIL’s weight in the benchmark also decreased by 10.2% at the end of April 2021 as compared to a high of 14.9% at the end of September 2020. RELATED NEWS Reliance ramps up its resources to become India’s largest producer of medical grade liquid oxygen for free Reliance Jio Q4 net profit up 47.5% YoY at Rs 3,508 crore; ARPU at Rs 138.20 Reliance Industries Q4 net profit doubles at Rs 13,227 crore Reliance Industries Ltd (RIL) reported a net profit of Rs 13,227 crore below ET Now poll of Rs 15,000 crore in the fourth quarter (Q4) of the financial year 2021 (FY21). It was 108.4% higher than Rs 6,348 crore in the same quarter last year. Profits last year in the same quarter was hit by the nationwide lockdown. The company's board declared a dividend of Rs 7 per share for FY 21. The consolidated revenue in Q4 FY21 from operations was at Rs 1.54 lakh crore, up 11% as compared to Rs 1.34 lakh crore in Q4 FY20. The same was reported at Rs 1.24 crore in the previous Q3 FY21 quarter.The stock was last seen trading at Rs 1,923.45 up 0.35% or Rs 6.85 on NSE on Wednesday.