Mutual funds pick 50 crore shares of Suzlon Energy in August that rallied 190% in 6 months
Suzlon Energy emerged to be mutual funds' favourite in August, with their holding in the company surging by a whopping 357% on a month-on-month (MoM) basis.
The fund houses added over 50 crore shares of the stock last month, taking their overall holding to 64.71 crore shares. The number of shares held by mutual funds in July stood at 14.09 crore, according to data sourced from ACE MF.
As many as 64 mutual funds held Suzlon Energy in their portfolio at the end of August with the combined market value of their stake at Rs 1,567 crore.
The shareholding data till August suggests a sustained buying activity by mutual funds.
From just 0.08% stake in the March quarter, mutual funds increased their holding to 0.74% for the quarter ended June. As of August 14, the MF holdings stood at 4.98%, which was a 424 bps jump over the June quarter.
The uptick in the stakes of mutual funds coincides with the multibagger returns given by the Suzlon Energy stock.
It has given 176% returns in the last one year, while returning 190% in six months.
Brokerage firm Nuvama in its August mutual fund report said that Suzlon Energy stock stood among the top additions for mutual funds in the smallcap universe alongside Minda Corporation, SJS Enterprises, Inox Wind and Medplus Health Services.
Bandhan Mutual Fund was the top buyer as it picked stake worth Rs 288 crore to bring its holding in the stock to 4.4%. Meanwhile, the stock was also among key additions by Edelweiss Mutual Fund which bought shares worth Rs 84 crore.
Suzlon Energy stock was a new entrant in two funds viz.
Invesco Mutual Fund and Franklin Templeton Mutual Fund. While the former bought shares worth Rs 182 crore, the latter purchased stake worth Rs 29 crore, the Nuvama report said.
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