CG Power - Bought by the Vanguard Group

By Research Desk
about 3 years ago

The Vanguard Group Inc A/c Vanguard Emerging Markets Stock indexed A Series of V I E I F, on Friday, 19th March, 2021, bought 1,11,86,212 shares of CG Power in Bulk deals on NSE, at Rs. 58.90 per share, for Rs. 66 crore, while such deal was happened in last 30 minutes on Friday, which gives bullish view of this FII on CG Power.

Vanguard Group is a U.S. $ 6.2 Trillion Fund, having holding of Rs. 12,074 cr in HDFC Ltd., Rs. 13,282 cr in Infosys and Rs. 2,390 crore in Axis Bank. This Fund is also invested in Zee Enteratinment, Federal Bank, Navin Fluorine, Shriram Transport, UPL and Crompton Greaves Consumer.
It is possible that this FII may be keen to buy more CG Power, as 1.12 crore shares, having acquired, is just 0.83% stake, while they have been holding on an average of 2% stake in such companies stated above. Hence, CG Power is now seen in accumulation, by the Jobbers and Brokers, who eventually buys for such FIIs.

In CG Power, promoter stake is at 53% (which are locked in for 3 years). Institutional investors are holding 13% and HNIs are holding 19%, with 15% stake largely held by retail (with 1.59 lakh shareholders are holding 18.17 crore shares, with an average holding of 1,142 shares by each investor).

Due to this buying seen for FIIs, share is seen rising every 2-3 months. In Oct 20, it was ruling at around Rs. 20, moved to Rs. 45 in Dec and Rs. 60 now in March. Possible to see levels of Rs. 78 and Rs. 99 after next couple of months, for each cycle, as bullish sentiments will keep continuing on the stock, by the Promoter, FIIs , DIIs , HNIs and retail investors.

This is not a buy recommendation, while Stock Recommendations are provided exclusively to our paid members in the Member Zone.

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