Foreign institutional investors have sold shares in Sakthi Sugars in the open market, after

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conversion of foreign currency convertible bonds (FCCBs) into equity shares.

Experts say that since shares converted via the FCCB route do not have a lock in period, FIIs would have cashed in on the market rally. As per the bulk deal data on National Stock Exchange (NSE), JP Morgan has sold 1,335,795 shares at Rs 106 per share to JPMSL A/c Copthall Mauritius Investment, while Morgan Stanley has sold 440,720 shares at Rs 107.06 a piece on January 7. Further on January 8, Deutsche Bank London sold 283,000 shares at Rs 104.28 a share.

“Since shares converted through FCCBs do not have a lock in period, investors would have cashed in on the market rally. This also in a way reflects the foreign investors view about the company’s prospects and they might want to move away from smaller companies,” Jagannadham Thunuguntla, equity head of SMC Capitals said.

Hitesh Agrawal, research head of Angel Broking noted sugar might be set for a correction. “This might be the one view foreign investors would have taken before selling the shares,” he added.