Bombay Dyeing update..

The institutional shareholding in Bombay Dyeing from June Q to Sept has gone from 73.28 lac (18.98%) shares to 76.86 lac shares (19.91%). Sl. No. Name of the Shareholder No. of Shares Sept 2008 No. of Shares June 2008 1 Life Insurance Corporation of India 3,355,281 3,355,281 2 Reliance Capital Trustee Company Ltd A/c Reliance Growth Fund 1,300,000 1,300,000 3 Miraw Asset Investment Management Co Ltd A/C Mirae Asset India Discovery Equity Investment Trust 1 602,567 0 4 Citibank N A New York Nyadr Department 579,544 0 5 GMO Emerging Markets Ltd 527,711 527,711 6 ICICI Prudential Dynamic Plan 450,000 450,000 7 Oriental Insurance Co Ltd 448,607 398607 8 Mirac Asset Investment Management Co Ltd A/c 423,099 411564 9 Swiss Fin corpn Mau Ltd 0 885,270 Total 7686809 7328433 The shareholding suggests that the institutional holding has in fact gone up by 1% yet the stock price has corrected by 63%. On 30th June the share price was Rs 634 to Rs 215. The key issue is that Bombay Dyeing has already decided to sell part of land I e around 4.5 lac sq ft for Rs 900 crs as reported in media. B Dyeing owns close to 10 mn sq ft land in Mumbai which is freely available for development. Since there is no cost of acquisition for the land, this co will be the least affected even if the property prices fall. Even if the slash the market prices to Rs 20000 per sq ft ( 35% below the market price ) yet it will earn at least Rs 16000 per sq ft pre tax. The list of shareholder clearly suggests the quality shareholders have continued faith in the co. It seems the share price must have crashed only for closure of positions of front runners in this stock. Once the last leg closure happens the stock price will bounce back by 100% in coming 3 to 6 months as there is noting wrong in the fundamentals of the co. Since the stock is futures there could be huge long positions also which when wound up could get hammered to any price. Long term investors may take advantage of the current carnage on this counter to swap their other realty stocks because this stock will take definitely less time to recover than others due to inbuilt fundamentals. Interestingly promoters had increased their stake in the co in Dec 07 quarter which was pre crash from 44.91 % to 47.1% and the same was well over Rs 600 per share.