FIIs Increases Stake In 5 Indian Defense Companies In Q1FY24
Foreign institutional investors (FIIs) have been buying a significant amount of shares in defense stocks during the April to June 2023 quarter.
This trend has been ongoing for a few years, particularly since the Russia-Ukraine war began. Both domestic and foreign investors have shown interest in defense stocks.
The top five defense stocks that FIIs have increased their stake in during this quarter are Hindustan Aeronautics, Zen Technologies, Bharat Electronics, MTAR Technologies, and Astra Microwave Products.
It is unclear whether FIIs bought these stocks all at once or gradually increased their stake over time.
Listed companies are required to disclose the names of individual shareholders who own more than 1% of the company’s shares, but they are not obligated to share details about the buying and selling of stocks.
Foreign institutional investors (FIIs) have increased their stake in Hindustan Aeronautics Limited (HAL), an Indian public sector aerospace and defense company headquartered in Bangalore.
In the first quarter of the current financial year, FIIs held 11.02% of the company’s total paid-up capital, which is equivalent to 3,68,62,285 shares.
This is an increase compared to the previous quarter, where FIIs held 8.58% stake in HAL. The Government of Singapore is one of the major FIIs holding 34,60,817 HAL shares (1.03%) stake in this defense stock.
In the April to June 2023 quarter, foreign institutional investors (FIIs) increased their holdings in Zen Technologies. Zen provides training solutions and products for the defense and security markets
They now hold 1.67% of the total shares, which is 14,05,080 shares. In the previous quarter, they held 9,67,856 shares, which was 1.22%
Foreign institutional investors (FIIs) have increased their ownership in Bharat Electronics Ltd (BEL), a defense company in India.
It’s an Indian state-owned aerospace and defense company with about nine factories and several regional offices in India
In the first quarter of the financial year 2024, FIIs owned 16.73% of the total shares of BEL, which is an increase from the previous quarter where they owned 15.83%.
This indicates that FIIs have raised their stake in BEL by approximately 0.90% between April and June 2023.
During the April to June 2023 quarter, foreign institutional investors (FIIs) increased their stake in MTAR Technologies.
MATR is an Indian precision engineering solutions company that provides mission-critical components for the aerospace, defense, nuclear and other industries.
They now hold 4.14% of the company’s total equity float, which is equivalent to 12,72,507 shares. This is an increase from the previous quarter, where they held 2.19% stake or 6,74,014 shares.
In the first quarter of the financial year 2024, Astra Microwave Products saw an increase in the stake held by Foreign Institutional Investors (FIIs).
Astra Microwave Products is an Indian company that designs and manufactures microwave products for the defense, space and telecommunications sectors.
FIIs now hold 3.03% of the company’s shares, which is an increase from the previous quarter where they held 2.32%. This means that FIIs have raised their stake in the company by around 0.69% between April and June 2023.