Jet Airways and Kingfisher Airlines–Retail Investors Deja Vu !!

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 ?

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