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Stocks

Harrow Investment (Promoters of Redington) bring down their holding from 13.3% to 8.2%

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Redington Logo

Redington is a supplier of “gadgets” – technology products, in wholesale, in India and overseas. They distribute products from Dell, Apple, Samsung, Lenovo, HP and others.

The company had a 27% increase in revenues in Q4, to 10,473 cr. Profits were up 12% to 1375 cr. and the Full year saw a 10% profit increase to 4257 cr. This translates to an EPS of about 10.64 and the stock is flat at 112.

In recently developments, they get an ok to distribute the Apple iPhones in UAE and Nigeria. Apple coming into India would actually benefit them, since Apple’s arrival means more sales (which will still go through Redington). Smartphones haven’t done very well, though.

Harrow Investment – the promoter of the Company formerly known as Redington Mauritius Limited (RML), Mauritius – an investment holding company, sold 20,505,333 shares representing 5.13% of the share capital thereby bringing down their stake in the company to 32,777,599 shares or 8.20%.

ICICI Fidelity Reliance

Part of this was purchased by Fidelity Puritan Trust Fidelity Low Priced Stock Fund. The fund held 4,700,000 shares or 1.18% (as of March, 2016) and increased its holding by 10,000,000 shares or 2.51% valued at 107 Cr.

Fidelity Low-Priced Stock Fund is an open-end fund incorporated in the USA. The Fund’s objective is capital appreciation. The Fund normally invests at least 80% of assets in low-priced stocks, which can lead to investments in small and medium-sized companies. The Fund invests in domestic and foreign issuers, and will invest in either “growth” or “value” stocks or both.

ICICI Prudential Mutual Fund also increased its stake from 2.82% (as of 31-May-16) to 4.57% while Reliance Mutual Fund which held 5.80% (as of 31-May-16) brought down its stake to 4.52%.

Holdings of ICICI & Reliance Mutual Fund in Redington India as of 31-May-2016

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