FII Holding Change – 3M is calculated as the difference between the current FII ownership percentage and the percentage 3 months ago. Suppose, FIIs held 10% stake in the company 3 months ago and currently they hold 12.5%, the ownership change percentage is (12.5 – 10) = 2.5%.
If FIIs anticipate that a company will perform well over the long-term and can be relied upon to create shareholder value, they will increase their stake in the company. Else, if the company is expected to underperform, FIIs might sell out, thereby reducing their stake.