Facebook Pixel Code

Fund houses pare stake in SpiceJet

Fund managers seem to have lowered their bets on the Kalanidhi Maran-promoted no-frills domestic carrier SpiceJet as a clutch of institutions, both foreign and domestic, have pared stakes in the company on a sequential basis.

Fund managers seem to have lowered their bets on the Kalanidhi Maran-promoted no-frills domestic carrier SpiceJet as a clutch of institutions, both foreign and domestic, have pared stakes in the company on a sequential basis. The latest to press the exit button was Macquarie Bank, which had reduced its holding in SpiceJet by over 50%.

Analysts see the move is part of the general trend among fund managers to avoid the highly turbulent airlines market. Wild swings in oil prices and other macro factors have been plaguing the industry for a while, and, in certain cases, there is the issue of over capacity too, they feel.

Among other funds, GS Investment Partners had reduced stake in the no-frills carrier from 3.99% as of quarter ending September last to 3.79% as of the quarter ending December 2010. Ewart Investments had also brought down stake in the airline to 2.41% as at the end of December quarter from 3.13% it was holding in the quarter ending September 2010.

Reliance Regular Savings Fund, one of the funds managed by the Reliance Capital, had also diluted stake in SpiceJet to 2.1% from 2.17% sequentially. Sundaram Mutual, formerly known as Sundaram BNP Paribas Mutuak Fund, had shed close to 1% stake in Spice Jet to bring its holdings down to 1.37% as of December quarter from 2.31% it was holding on September 2010. Other funds which had diluted their holdings in SpiceJet include LEGG Mason South East Asia Fund and DB Fund.

Get live Share Market updates, Stock Market Quotes, and the latest India News and business news on Financial Express. Download the Financial Express App for the latest finance news.

First published on: 05-04-2011 at 02:17 IST
Market Data
Market Data
Today’s Most Popular Stories ×