The retail craze | Nifty 500 stocks where public shareholder base boomed since Covid days

Since the onset of the Covid-19 pandemic, along with subsequent lockdowns and their economic repercussions, there has been a significant surge in the number of demat accounts within the securities market. The new wave of retail investors, who have ventured into the market, developed an affinity not only for largecap stocks but also for those with the potential to yield decent returns in a short span of time. Here we have made a compilation of companies that have recorded a remarkable expansion in their public shareholder base in the recent years.

Over the last four years, the public shareholder base has gained over 1,200 percent, data from Prime Database shows. While FIIs and DIIs have been offloading a partial stake in the company, the promoters of Deepak Nitrite have increased their stake to 49.13 percent from 45.69 percent over the same period. In 2021, the stock neared Rs 3,000, up almost 650 percent from the levels recorded before Covid in 2019.

Shareholding in the electric bus manufacturer has grown just over 1,100 percent, data showed. Foreign institutional investors have been attracted by the company as FIIs have increased their stake to about 8.5 percent to a mere 3 percent recorded in 2019. On the other hand, promoters of Olectra have offloaded nearly 11 percent of their stake in the company to 50 percent. The Hyderabad-based company competes with the likes of JBM Auto, Tata Motors, and Ashok Leyland.

The number of public shareholders since the onset of the Covid-19 pandemic has increased to 1,006 percent, according to Prime Database. FIIs and DIIs have been offloading shares in the power major, with both nearly halving their stake in Tata Power. The government, too, has sold shares and currently has about 0.32 percent of the company. With a market cap of about Rs 81,000 crore, its 10-year compounded sales growth is about 5 percent.

The public shareholding base in KPR Mill, one of the largest vertically integrated garment manufacturers, has increased by 981 percent since 2019. While promoters and DIIs have offloaded a portion of their stake in the company, FIIs have increased their stake by nearly 2 percent. Experts suggest that it will be one of the companies that will benefit the most from the China+1 strategy, a move to gradually shift production away from the second-most populated state in the world.

Public shareholding in the Ahmedabad-headquartered electric transmission company has risen 945 percent since the outbreak of the pandemic. With a market cap of almost Rs 88,000 crore, its 5-year compounded sales growth is about 28 percent. In 2022, the shares touched a high of about Rs 4,000 but since the Hindenburg report, the shares have tanked to about Rs 700.

The consumer durables company has witnessed a 931 percent increase in its public shareholding base. FIIs have increased their stake in the company by 17 percent over the last four years to 59.22 percent. DIIs have also marginally increased their stake in Redington.

One of the leading food services companies in India and the organisation behind Domino’s, the public shareholder base in Jubilant has shot up 930 percent over the last four years. As per data, FIIs and the government have offloaded their shares, and DIIs have increased their stake in the company to about 23 percent. After the easing of Covid-related restrictions, the stock has lost the momentum it gained when it surged almost 163 percent in about 2 years.

One of the fastest-growing electronics companies in the country, shareholding in Dixon Tech has soared 845 percent since the start of the pandemic. FII’s have been bullish on the company and have increased their stake in the company by over 4 percent. Similarly, DIIs have also increased their stake by 2 percent. Recently, Padget Electronics, a subsidiary of Dixon, entered a deal with Xiaomi to manufacture smartphones for the company. As per the agreement, the phones will be manufactured at Padget’s manufacturing unit in Noida, Uttar Pradesh.

Public shareholding in one of the world’s largest producers of DMA-HCL (Di Methyl Amine Hydrochloride) and manufacturer of Aliphatic Amines has jumped 800 percent, Prime Database figures indicate. With a market cap of over Rs 7,000 crore, Balaji’s peers include majors like Pidilite Industries, SRF, Tata Chemicals, and Linde India. The company’s 10-year compounded sales growth is estimated to be about 17 percent.

Figures suggest that public shareholders in India’s largest footwear brand have increased 800 percent over the last four years. In the footwear industry, Relaxo competes with Metro Brands, Bata India, and Campus Activewear among others. Data suggests that its 10-year compounded profit growth is about 13 percent.