An older article on my Blog. Why do Traders Go Bust and Investors Get Lost !!
The only way one can explain Retail Investor increasing in Kingfisher Airlines is – Hope for Good Things to happen !!
| KINGFISHER AIRLINES | SHAREHOLDERS | |
| Retail Shareholders (2008-2018) | No. of Shareholders | No. of Shares |
| March 31, 2008 (1L) | 50,098 | 73,52,296 |
| March 31, 2009 (1L) | 64,730 | 1,26,90,145 |
| March 31, 2010 (1L) | 81,311 | 2,02,79,212 |
| March 31, 2011 (1L) | 95,421 | 2,66,73,862 |
| March 31, 2012 (1L) | 1,35,547 | 5,51,99,258 |
| March 31, 2013 (1L) | 2,30,069 | 16,64,78,828 |
| March 31, 2014 (1L) | 2,33,242 | 19,73,99,714 |
| September 30, 2014 (1L) | 2,33,393 | 21,16,70,473 |
· Shareholders holding upto 1 lakh paid up capital went up from 50k in 2008 to 2.3 lakhs in Sept 2014.
· In March 2012 there were 1.35 lakh shareholders and by September 2014 there were 2.3 lakh.
· The terrible part number of shares from 2012 to 2014 went up from 5.5 crores to 21 crores !!
Deja Vu – Jet Airways
5-7 years later we have another airlines – Jet Airways
The behaviour just does not change.
| Jet Airways | SHAREHOLDERS | |
| Retail Shareholders (2008-2018) | No. of Shareholders | No. of Shares |
| Mar 31 , 2018 | 89,686 | 48,69,633 |
| Jun 30 , 2018 | 1,11,969 | 85,16,697 |
| Sept 30, 2018 | 1,25,844 | 1,11,52,359 |
| Dec 31, 2018 | 1,29,246 | 1,13,19,064 |
| March 31 , 2019 | 1,37,524 | 1,29,72,794 |
From 4.29% of equity to 11.42% of Equity now with Retail Shareholders!! A total of 1,37,524. ( less than 2 lakh share capital.)
The sad part is we had 2.3 lakh retail shareholders in Kingfisher but a company like Kotak Mahindra Bank has 2.23 lakh retail shareholders !!
Doing a quick check we see a Pidilite , Bata , Voltas and many known companies have lesser retail shareholders ( 2 lakh capital ) compared to a 1,37,524 of Jet Airways. Many smaller companies with longer track records have barely 5k-50k retail shareholders.
Will this ever change ?