Foreign institutional investors (FIIs) scaled up their
holding in three leading domestic pharmaceutical companies
in Lupin by 5 per cent, Cadila Healthcare by 4
per cent and Aurobindo Pharma by 1 per cent during
the quarter ended 30 September 2003.
rise in FIIs'' holding in Lupin was due to an increase
in shareholding of HSBC Global Investment Funds and a
fresh acquisition of a 2.3-per cent stake by ABN Amro
Funds. During the period, the HSBC Global Investment Funds
stake went up from 1.62 per cent to 3.04 per cent while
ABN Amro Fund took an entry into the company with a 2.3-per
Healthcare promoter Pankaj Ramanbhai Patel and other group
firms together have offloaded a 4-per cent stake in the
company in favour of FIIs. Bank of America International
Investment has picked up 2-per cent stake while other
FIIs have picked up less than 1-per cent stake in the
Aurobindo Pharma, the FIIs have increased their stake
by around 1 per cent, from 11.5 per cent to 12.7 per cent,
during the quarter ended 30 September. Analysts say the
continuous purchasing by FIIs kept the stock moving up
in the pharma sector in the second quarter.
add that the news that Lupin promoters are offloading
a 26-per cent stake in the company had pushed the company
scrip to an all-time high of around Rs 500. Similarly,
Cadila Healthcare''s acquisition in France had also created
a buzz in the market.
SBI Mutual Fund vice-president Sandip Sabharwal: "Across
the spectrum, the FIIs have increased their presence considerably
focusing mainly on mid-cap companies. The fundamentals
of Lupin, Cadila and Aurobindo look very strong. This
may be one of the reason for substantial investment in
these counters by FIIs."
an analyst with Motilal Oswal Securities: "A large
number of drugs are going off patent overseas in the coming
years. Indian pharma companies propose to supply active
pharmaceutical ingredients to global generic pharmaceutical
firms as patents on drugs worth over $30 billion will
annually expire over the next few years."