Decrease in foreign holding paves way for IndusInd Bank’s entry into MSCI index
investors of IndusInd Bank, as the latest shareholding data suggests that there is a high probability of the bank being included in the MSCI index during the November review.
The latest shareholding of IndusInd Bank showed that the foreign shareholding has decreased to 62.61%, thereby meeting the minimum headroom requirement of 15%.
This development is expected to pave the way for its inclusion with a 0.5 factor in the November 2023 review, according to Nuvama Alternative & Quantitative Research.
Given that the global cut-off date began on Wednesday, and the latest shareholding information is official, the stock should likely qualify.
As per Nuvama Alternative, IndusInd Bank’s inclusion is anticipated to bring in inflows of $280 million, equivalent to approximately 16 million shares.
However, the inclusion, if it happens, is unlikely to have a significant impact, as the event was largely anticipated and has partly been factored into the stock price, Nuvama said.
The cumulative holding of foreign portfolio investors under category — I came down to 37.09% in the September quarter from 37.84% in the June quarter.
Meanwhile, mutual fund holdings increased to 16.37% at the end of September quarter, from 15.22% at the end of June quarter.
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