PTC Industries, Ddev Plastiks: FIIs bought stake in 30 small-cap firms in 2023

Foreign institutional investors (FIIs) bought into more than 30 small-cap firms on Dalal Street in 2023. Among the firms they invested in, shares of Jai Balaji Industries topped the list in terms of returns with a rally of 1,766 per cent in the past one year. Data shows that FIIs raised their stake in the company to 2.57 per cent as of December 31, 2023, against almost no holding at the end of December 2022.

Transformers & Rectifiers (India) is next on the list. FIIs increased their stake to over 3 per cent in the company last year compared with no holding in December 2022. Shares of the company jumped 264 per cent in the last one year till January 17, 2024.

Sharing its view on foreign institutional investors and broader markets, Seshadri Sen, Head of Research, Emkay Global said, “FY25 may see record foreign inflows in the domestic equity market and most of the inflow will go to small and midcap stocks.”

In the year 2023, foreign investors also foryed into PTC Industries, Bhilwara Spinners, Ddev Plastiks Industries, Artemis Medicare Services, Aditya Vision, Mafatlal Industries, Pitti Engineering, Permanent Magnets and Arfin India. Their ownership stake in these companies ranged from 0.10 per cent to 2.60 per cent as of December 31, 2023, a significant shift from the complete absence recorded at the end of December 2022. The shares of these players have witnessed remarkable growth, more than doubling investors' wealth in the past twelve months.

In general, the entry of global investors underscores the resilience and potential of smaller or lesser-known companies and raises questions about the shifting dynamics and newfound opportunities in the domestic listed universe.

Data further highlighted that foreign investors also entered some other companies such as Mishtann Foods, Inspirisys Solutions, Hindustan Tin Works, Nile, Iris Business Services, CSL Finance, BCL Industries, Mallcom (India), Megastar Foods, Jubilant Industries, Kriti Industries (India), Vineet Laboratories, Hisar Metal Industries, Medico Remedies and Indian Card Clothing Company, among others. FIIs did not hold any stake in these firms as of December 2022, data available with the corporate database Ace Equity showed.

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