15 smallcap gems with major MF stakeholding

Shareholding pattern refers to a company’s capital structure disclosing how the total number of outstanding equity shares is divided among various owners such as promotors, individuals and institutions. All listed Indian companies are mandated to disclose their shareholding pattern to concerned stock exchanges. It includes how many shares the mutual fund industry too holds. A high investment by mutual funds is a positive sign as it shows that they trust the company to generate attractive returns. Deepak Jasani, Head Retail Research of HDFC securities says, “It shows that mutual fund companies are bullish about the prospects of the company in the medium term. Fund managers are mindful of liquidity while raising stakes in these companies”.
The presence of large informed shareholders with major holdings implies reduced liquidity. Shyam Sekhar, founder and chief ideator of iThought is of the view that mutual funds along with FII control close to 90 percent of public float in many small and midcap stocks. This turns several stocks into just technically listed, sporadically traded stocks. The launch of ETFs across categories further aggravates the situation of manufacturing price volatility when flows spike up. ETFs are forced to buy illiquid stocks at any price.
Here are the top 15 smallcap stocks wherein the mutual fund industry holds upto 37 percent of the total equity capital of the companies. Data source: ACEMF. Shareholding data are as of either June 2023 or March 2023.

Gateway Distriparks
Percentage of MF holding in the Equity capital of the company as of June 2023: 37.5%
Total no. of shares held by mutual funds: 18.71 crore
Total no. of mutual fund schemes holding the stock: 30

Equitas Small Finance Bank
Percentage of MF holding in the Equity capital of the company as of June 2023: 37.1%
Total no. of shares held by mutual funds: 41.25 crore
Total no. of mutual fund schemes holding the stock: 76

Kalpataru Projects International
Percentage of MF holding in the Equity capital of the company as of March 2023: 36.1%
Total no. of shares held by mutual funds: 5.87 crore
Total no. of mutual fund schemes holding the stock: 66

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Multi Commodity Exchange Of India
Percentage of MF holding in the Equity capital of the company as of March 2023: 34%
Total no. of shares held by mutual funds: 1.73 crore
Total no. of mutual fund schemes holding the stock: 83

KNR Constructions
Percentage of MF holding in the Equity capital of the company as of June 2023: 33%
Total no. of shares held by mutual funds: 9.28 crore
Total no. of mutual fund schemes holding the stock: 66

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Greenply Industries
Percentage of MF holding in the Equity capital of the company as of June 2023: 32.2%
Total no. of shares held by mutual funds: 3.97 crore
Total no. of mutual fund schemes holding the stock: 22

Rolex Rings
Percentage of MF holding in the Equity capital of the company as of June 2023: 31.3%
Total no. of shares held by mutual funds: 0.85 crore
Total no. of mutual fund schemes holding the stock: 37

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V-Mart Retail
Percentage of MF holding in the Equity capital of the company as of June 2023: 28.6%
Total no. of shares held by mutual funds: 0.57 crore
Total no. of mutual fund schemes holding the stock: 41

PVR Inox
Percentage of MF holding in the Equity capital of the company as of June 2023: 28.3%
Total no. of shares held by mutual funds: 2.77 crore
Total no. of mutual fund schemes holding the stock: 95

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City Union Bank
Percentage of MF holding in the Equity capital of the company as of June 2023: 27.7%
Total no. of shares held by mutual funds: 20.54 crore
Total no. of mutual fund schemes holding the stock: 65

DCB Bank
Percentage of MF holding in the Equity capital of the company as of June 2023: 27.5%
Total no. of shares held by mutual funds: 8.57 crore
Total no. of mutual fund schemes holding the stock: 30

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Krishna Institute of Medical Sciences
Percentage of MF holding in the Equity capital of the company as of June 2023: 27.4%
Total no. of shares held by mutual funds: 2.19 crore
Total no. of mutual fund schemes holding the stock: 52

PNC Infratech
Percentage of MF holding in the Equity capital of the company as of June 2023: 27.2%
Total no. of shares held by mutual funds: 6.97 crore
Total no. of mutual fund schemes holding the stock: 62

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Orient Electric
Percentage of MF holding in the Equity capital of the company as of June 2023: 26.9%
Total no. of shares held by mutual funds: 5.74 crore
Total no. of mutual fund schemes holding the stock: 38

Ahluwalia Contracts (India)
Percentage of MF holding in the Equity capital of the company as of June 2023: 26.4%
Total no. of shares held by mutual funds: 1.77 crore
Total no. of mutual fund schemes holding the stock: 16

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