It was my mistake to use the term ‘Free Float’ – This gives a completely different impression. What I wanted to highlight is that the supply of shares is very limited. To make my point, there are very few holders of the stocks to change hands with any big funds, and that is upping the game for this company. Not that I think the stock is extremely overpriced or something but the sheer supply and holders are very limited.
Here’s an image from 2022FY AR to highlight the same. (Note: This is before the 3:1 stock split when the total outstanding shares were only 40Lac but see the pattern of the holders, which as per my understanding, are extremely less at 7448)
It has been a bummer for institutions to enter the game, but when you check the BSE notifications, you would notice that every now and then, the company is meeting the institutional investor showing their interest, and I reckon the recent move to allot bonus shares were a move requested by these investors to encourage taking the initial position. Of course, it is a hunch, but keeping track of this company… I have a strong feeling about this… you can even refer to the trading volume to cross-validate my point. I won’t be surprised if a new share split or bonus is announced in the near future.
Disc: Invested – Core Holding.
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