Superstar Investor Alert: Azim Premji-associated market funds add two portfolio companies in Q1

Private funds that invest on behalf of Wipro founder chairman Azim Premji picked up two new portfolio companies and likely exited one in the three months ended June 30, 2021.

The investment entities bet on multiplex operator Inox Leisure and tractor maker Escorts, buying a 1.49% and 1.37% stake, respectively, as per shareholding disclosures for the quarter.

The bet on Inox Leisure last quarter is probably based on the expectation of opening of cinema chains as the severity of the Covid-19 pandemic started receding after a spike in infection cases in April, especially in North India. Inox Leisure’s share price lost two-thirds of their value by May 2020 from the peak in February last year. It has doubled from its lows but it still has some road to cover to get back to the previous peak.

At the same time, the funds trimmed its holding or likely exited its investment in hospital chain Narayana Hrudayalaya. An investment entity under PremjiInvest, the family office of Premji that invests in both public and private markets through separate investment vehicles, held a 1.13% stake in the hospital chain but sold some or all of its stake last quarter.

Companies need to disclose public shareholders’ name with or over 1% stake in listed companies. Premji’s investment fund does not figure among the list.
Meanwhile, the funds trimmed their holding in three companies—Kolkata-based fast-moving consumer goods company Emami, Tata Group’s publicly listed retail arm Trent, and Zydus Wellness.
In Zydus, where it is invested via two entities, it trimmed stake of one and raised exposure via the other, even as cumulatively it marginally decreased its stake.

On the plus side, its holding rose marginally in Tube Investments Ltd. It also topped up its exposure to auto component maker Craftsman Automation last quarter.

Factoring out the investment entities’ stake in group flagship Wipro, they own a stake worth at least Rs 2,444 crore currently, based on the shareholding as of June 30. The actual figure is expected to be higher as they may also be owning a small stake in several companies that may not be in the public domain as listed firms do not separately disclose name of shareholders if they hold less than 1%.

PremjiInvest, which manages both private investment and public market funds for Premji, is one of the larger professionally managed family offices active in the stock market. It has a portfolio of at least nine third-party companies in its basket.Some other companies in its portfolio include Future Lifestyle Fashions and Future Retail.

Companies whose shares it had sold in the past include dairy company Parag Milk Foods, Tata group’s engineering and white goods company Voltas, private lender DCB Bank and JK Lakshmi Cement.
It is also an active private market investor with exposure to both startups as well as mature companies.