10 Best Penny Stocks with High FII Holding

Penny stocks with strong FII backing offer significant growth potential. These low-priced shares, supported by foreign institutional investors, have the power to soar as they gain liquidity and investor confidence. With thorough research, these stocks can deliver impressive returns.

In May 2025, FIIs have invested ₹18,082 crore in the Indian equity market, which reflects their positive sentiment towards the market. In this blog, we will present a list of top penny stocks in which FIIs have a high stake. This information will help retail investors make informed decisions and identify stocks with potential high returns.

How to Identify FII Interest in Penny Stocks?

Foreign institutional investors are sophisticated investors that usually invest in reputed companies with strong fundamentals. However, there are some penny stocks with high FII holdings. There are usually some solid reasons behind this—such as improvement in the company’s financial performance, launch of a new project, or major positive changes related to the industry. FIIs do in-depth research before investing and only then increase their stake in a penny stock.

Signs of such interest are often clearly visible in the market. Some major signs can be as follows:

• Continuous increase in FII’s stake in the shareholding pattern
• Unusual increase in trading volume
• Entry of institutional investors after release of quarterly results
• Stable and consistent rise in share price 

These signs indicate that FIIs are gradually building their position in the penny stock. However, not every rise means that the stock is fundamentally strong. Sometimes such movement is also seen due to mere speculative activities.

Top Penny Stocks with High FII Holding

Company	Current Market Price (in ₹)	Market Capitalisation (in INR crore)	52-Week High (in ₹)	52-Week Low (in ₹)	FII holding
Iconik Sports and Events	29.8	58.6	29.8	16.6	59.2%
Leading Leasing Finance & Investment Company	6.63	328	12.3	2.90	49.68%
Standard Industries	20	129	39.0	17.5	38.86%
Mercury Trade Links	16.2	22.1	105	9.37	29.19%
Yes Bank	20.4	64,070	27.4	16.0	26.88%
Suzlon Energy	65.6	89,033	86	46	23.04%
Celebrity Fashions Ltd	13.2	78.6	21	8.36	15.12%
Zee Media Corporation	14.3	896	26.4	10.6	13.65%
Dish TV India Ltd	5.29	974	17.2	4.70	10.54%
Vodafone Idea Ltd	6.79	73,565	19.2	6.46	6.56%

Also Read:Top 10 Highest Dividend Paying Penny Stocks in India

Overview of the Top Penny Stock with High FII Holding

An overview of the top penny stocks with high FII holding is given below:

1. Iconik Sports and Events Ltd

Iconik Sports and Events provides information technology and business consultancy services. The company has shown strong progress in fundamentals, including improvement in both revenue and profit. The increase in FII holdings shows that investors believe in its future prospects.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
79.21%	79.21%	88.14%

2. Leading Leasing Finance & Investment Company Ltd

This company is active in financial services, such as leasing and financing projects. The company provides financial services to small and medium businesses. Its strong customer base and good collection rate make it financially stable. The company’s debt management is fine and the capital structure is strong. Foreign investors have expressed confidence in the company, which shows the possibilities of expansion in the future.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
57.80%	95.67%	24.23%

3. Standard Industries Ltd

Standard Industries Ltd works in textiles and real estate. The company manufactures school uniforms and other clothes, which have good demand in the market. The company also has property in the Deonar area of ​​​​Mumbai, which the company is managing effectively and taking the business forward. The financial position of the company is strong and the debt is low. Foreign investors have shown confidence in this company, which is a positive sign for its future growth.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-20.44%	-41.50%	85.02%

4. Mercury Trade Links Ltd

Mercury Trade Links is involved in trading and import-export business activities. It works especially in the field of electronics and technology products. The company has strengthened its marketing and supply chain in recent years. In terms of fundamentals, the company has low debt and positive cash flow, which gives it good growth prospects in the future. FII investors have a significant stake in the company, which makes it worth considering.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
76.73%	219.04%	815.26%

5. Yes Bank Ltd

Yes Bank is a large private sector bank in India, started in 2004. The bank has expanded into many financial services such as retail banking, corporate banking, and investment services. In recent years, the bank has paid special attention to improving its financial position. Foreign investors’ confidence has also increased, especially due to the bank’s corrective measures. The bank aims to increase the number of customers through better service and digitalization.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-23.49%	624.30%	659.35%

6. Suzlon Energy Ltd

Suzlon is a leading renewable energy company that manufactures and installs wind energy turbines. As a leading wind energy sector company in India, Suzlon has improved the quality of its products and services in recent years. The company has adopted several strategies to reduce its debt. Foreign investors continue to have confidence in it, which leads it towards stability and growth in the future.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
35.48%	757.17%	1,490.53%

7. Celebrity Fashions Ltd

Celebrity Fashions is a leading fashion and apparel manufacturing company in India. It produces and distributes branded clothing and accessories. The company has gained a good foothold in the market by improving the quality and design of its products. Financially the company is healthy and has low debt. The stake of foreign investors raises hopes of stability and growth in the company.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-29.07%	-10.79%	142.62%

8. Zee Media Corporation Ltd

Zee Media is a leading media house that offers TV news channels and digital content. The company has also made rapid strides in digital media. Its channels are popular across the country and advertising revenue has also seen an increase. The company’s focus is on increasing content quality and reaching new audiences. The stake of FII investors makes it attractive for investors. 

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-6.35%	-9.39%	108.96%

9. Dish TV India Ltd

Dish TV is one of India’s largest DTH service providers. It offers digital TV channels and is focusing on providing better service to its customers by adopting new technological changes. The company’s revenue is stable and operational costs are under control. FII investors are expressing confidence in the growth of the company by investing in it.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-65.88%	-58.48%	-21.95%

10. Vodafone Idea

Vi, is a well-known telecom company of India which was formed in 2018 by the merger of Vodafone and Idea. Initially, the aim of the company was to provide a better mobile network across the country and especially to provide 4G services to rural areas.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-58.47%	-24.78%	-20.35%

In the last few years, the company has faced many challenges – especially due to lack of funds and increasing competition. But now the company has started preparing afresh. Recently it has raised huge funds, so that the network can be improved. The special thing about Vi is that its focus is now more on service quality and user experience than profit. The company also wants to strengthen its hold in small cities and towns and is trying to become a new age digital telecom company.

Also Read: Best Bank Penny Stocks List

Key Performance Indicators (KPIs)

Company	Net Profit Margin (%)	ROE (%)	ROCE (%)	Debt to Equity Ratio
Iconik Sports and Events	20.47	7.03	8.35	0
Leading Leasing Finance & Investment Company	13	3.85	4.23	4.97
Standard Industries	-48.38	-11.30	-8.28	0.10
Mercury Trade Links	8.22	9.94	12.26	0.00
Yes Bank	7.91	5.11	1.06	NA
Suzlon Energy	19.02	33.92	24.15	0.05
Celebrity Fashions Ltd	-11.04	-88.85	-41.34	2.84
Zee Media Corporation	-19.20	-54.10	-33.39	0.36
Dish TV India Ltd	-31.10	0.00	-3.61	0.00
Vodafone Idea Ltd	-62.85	0.00	-1.98	-2.79

Advantages of Investing in Penny Stocks with High FII Holding

FII holdings in penny stocks can offer certain benefits, but it’s essential to consider the factors behind such investments. Here are the main advantages:

• Increased Liquidity: High FII holdings in penny stocks typically increase the liquidity of these stocks, making it easier for investors to buy and sell shares without causing significant price fluctuations. This helps in smoother entry and exit strategies for retail investors.
  
• Investor Confidence: When FIIs invest in penny stocks, it often indicates strong confidence in the company’s growth potential. Since FIIs do thorough research before making an investment, their backing of a stock usually points to solid fundamentals or positive future prospects, attracting additional investors.
  
• Potential for High Returns: Penny stocks with high FII holdings are often seen as having significant growth potential. FIIs invest in stocks that show promise for substantial returns. These stocks, being low-priced, can experience sharp upward movement as the company’s financials improve or gain more attention.
  
• Better Governance and Management: Companies with high FII involvement tend to adhere to better corporate governance practices. FIIs typically push for greater transparency and improved management practices, which results in better operational efficiency and financial stability for the company.
  

Risks of Investing in Penny Stocks with High FII Holding

FII holdings in penny stocks may raise hopes, but investing in them without proper information can result in losses. The main risks that come with investing in such stocks are mentioned below:

• Lack of Liquidity : The biggest risk associated with penny stocks is that the number of buyers and sellers are very low. If the FIIs sell their stake, there may be no buyer present, making it difficult for retail investors to sell them when needed.
• High Volatility : The shares of these companies can fluctuate very quickly due to market manipulation. Even a small news can cause significant price fluctuations.
• Weak Fundamentals : Often the financial metrics of these penny stocks is not strong. Their revenue, profit or business model is not clear, which makes it difficult to trust them in the long term. 

Factors to Consider Before Investing in Penny Stocks with High FII Holding 

Investors should consider the following factors before investing in penny stocks:

• Need for research : Before investing in such stocks, analyze the company thoroughly, including the background of the management team, industry trends, and the reason behind increase in FII’s stake.
• Know your risk profile : Every investor has a different risk profile. If you are a beginner, do your research and start with a small amount.
• Diversification is important :  Always diversify your portfolio when investing in penny stocks. This will ensure that if investment in one stock declines in value, the other stocks can balance it out.

Conclusion

The increasing share of FIIs in penny stocks is definitely a positive sign, but it is only one side. It is important to understand each company’s business model, financial health and future prospects.

Penny stocks carry risks such as low liquidity, high volatility and weak fundamentals. In such a situation, just following the crowd or news without research can prove to be harmful.  If you want to invest in them, analyze these companies thoroughly, start with a small amount, keep the portfolio diversified and move ahead with a long-term vision. Also, stay updated about the recent news about the company.

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