Fenner Belts Ltd. is a listed company. In spite of having excellent financial performance the stock performance in Stock Market was lackluster. It was also noted that retail participation in stock market is quite low. Sh

CS Professional · Capital Commodity and Money Market · PYQS · June 2019
Fenner Belts Ltd. is a listed company. In spite of having excellent financial performance the stock performance in Stock Market was lackluster. It was also noted that retail participation in stock market is quite low. Shareholding pattern of the Company as on 31st December, 2018 is given below : Sr. No. Particulars No. of Holders No. of Shares 1 Promoters and Promoters Group 10 75,00,000 2 Foreign Institutional Investors 4 12,00,000 3 Public Financial Institutions 6 8,00,000 4 Bodies Corporates 10 3,00,000 5 Resident Individuals 1,240 2,00,000 Total 1,270 1,00,00,000 The Company earlier allotted warrants to the Promoters. These warrants were converted into 10,00,000 equity shares of ₹10 each at a premium of ₹90 each. The prevailing price of equity share in the Stock Market is ₹65. In the light of above answer the following: What is the percentage of holding of each kind of shareholders before and after allotment of shares against warrants ?

Answer & Explanation:

Percentage of Holding: Before Allotment of shares against warrants: Promoter Holding: 75% (75,00,000 / 1,00,00,000 * 100) Foreign Institutional Investors: 12% (12,00,000 / 1,00,00,000 * 100) Public Financial Institutions: 8% (8,00,000 / 1,00,00,000 * 100) Bodies Corporates: 3% (3,00,000 / 1,00,00,000 * 100) Resident Individuals: 2% (2,00,000 / 1,00,00,000 * 100) Public Holding (Total): 25% After Allotment of shares against warrants: New shares allotted to Promoters: 10,00,000 Total Shares after allotment: 1,00,00,000 + 10,00,000 = 1,10,00,000 S. No. Particulars No. of Shares (Before Allotment) % (Before Allotment) No. of Shares (After Allotment) % (After Allotment) 1. Promoter and Promoter Group 75,00,000 75 85,00,000 77.27 2. Foreign Institutional Investors 12,00,000 12 12,00,000 10.91 3. Public Financial Institutions 8,00,000 8 8,00,000 7.27 4. Bodies Corporates 3,00,000 3 3,00,000 2.73 5. Resident Individuals 2,00,000 2 2,00,000 1.82 Total 1,00,00,000 100 110,00,000 100 Promoter Holding: 77.27% (85,00,000 / 1,10,00,000 * 100) Public Holding (Total): 22.73%

Topics: Capital Market

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