India’s retail investors are going through a period of strategic changes. Now they are moving beyond shares of veteran companies of IT sector in the hope of good profits. According to the Analysis of Moneycontrol for the last 3 financial years, retail participation has increased rapidly in companies like IRFC, Yes Bank, Vodafone Idea and Suzalon Energy. On the other hand, retail investors have declined in India’s large IT companies.
The country’s second most valuable company TCS has lost about 3 lakh retail investors in the last 3 years and now it has a total of 2 million retail shareholders. Infosys also showed a similar trend and now there are more than 24 lakh retail shareholders. Wipro, HCL Tech and Tech Mahindra have also seen a decrease in retail participation. This change may be a sign of increasing appetite of retail investors for sudden strong returns compared to stable compound returns.
Tata Motors has the highest retail shareholder
Tata Motors has more than 66 million retail shareholders. Yes Bank has seen the most bounce in retail participation. The bank added about 24 lakh new individual shareholders during 3 years. Now the number of its retail shareholders has exceeded 62 lakhs. The number of retail investors of Vodafone Idea increased by 25 lakhs, and the total number reached about 60 lakhs. This is followed by the Renewable Energy Sector Company Suzalon Energy. It now has more than 56 lakh retail investors. Backward companies of Infrastructure sector like GTL Infra and Jayaprakash Power Ventures have also wooed retail investors. These companies have more than 25-25 lakh shareholders.
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Railway companies are also not far behind
The government company Indian Railway Finance Corporation (IRFC) has increased the number of retail shareholders by 350 percent in three years. The total number has increased to 56 lakhs. Similarly, the total number of retail shareholders in RVNL has increased 3 times in 3 years to 23.45 lakh shareholders. Other stocks such as IRCTC, Railtel Corporation and private company Titagarh Rail Systems have also seen increased interest of retail investors.
