Foreign Institutional Investors (FIIs), often dubbed the ‘smart money’, have placed significant bets on a select group of penny stocks in the second quarter of the fiscal year 2025-26. Their strategic moves, spotted in the latest shareholding data, reveal a growing conviction in companies showing strong turnaround potential, cleaner balance sheets, and alignment with India’s economic growth cycle.
When FIIs increase their holdings, it often signals a deeper analysis and a medium to long-term outlook. This report delves into the 9 penny stocks that witnessed the most substantial percentage increase in FII holdings from June to September 2025, listed in descending order of the stake hike.
1. Identixweb Limited: FII Stake Up 3.01%
FII Stake Increase: Rose from 9.04% in June to 12.05% in September 2025.
Current Price: Rs 80.09 (as of October 24, 2025).
Identixweb Limited is an innovative IT company founded in 2017, specializing in SaaS-based digital solutions. It develops a range of products including e-commerce platforms, web applications, and custom software. A key part of its portfolio includes various apps for the Shopify ecosystem, helping businesses worldwide enhance their digital footprint and operational efficiency. The substantial FII interest suggests confidence in its niche SaaS business model and its potential for scalable, high-margin growth in the expanding global digital marketplace.
2. Rico Auto Industries: FII Stake Up 1.68%
FII Stake Increase: Rose from 1.35% in June to 3.03% in September 2025.
Current Price: Rs 86 (as of October 24, 2025).
Rico Auto Industries is a leading Indian auto components manufacturer and a global supplier of high-precision components and assemblies. Its diversified portfolio supports Internal Combustion Engines (ICEs), Hybrid Vehicles, and Electric Vehicles (EVs). With 16 manufacturing plants across India and a global presence, the company is also strategically expanding into non-automotive verticals like railways and defence. FIIs were likely drawn by its robust order book exceeding Rs 10 billion and its focus on higher-margin export and new-age vehicle businesses.
3. OnMobile Global: FII Stake Up 1.62%
FII Stake Increase: Rose from 0.24% in June to 1.86% in September 2025.
Current Price: Rs 73.7 (as of October 24, 2025).
OnMobile Global is a global provider of mobile entertainment and gaming solutions. Operating in over 69 countries, its offerings include Ringback Tones (RBT), advanced mobile gaming platforms like ONMO, and enterprise communication services under the Buzzmo brand. The FII stake hike coincides with impressive growth in its gaming segment, where the subscriber base crossed 12 million. The company’s target to achieve a $2 million monthly run rate in gaming subscriptions by FY26-end appears to have captured the smart money’s attention.
4. Last Mile Enterprises Limited: FII Stake Up 1.33%
FII Stake Increase: Rose from 13.46% in June to 14.79% in September 2025.
Current Price: Rs 13.43 (as of October 24, 2025).
Last Mile Enterprises Limited, founded in 1994, is engaged in construction, engineering, real estate development, and infrastructure projects. The company focuses on providing quality services for building and urban development, actively promoting sustainable growth and innovative solutions within its sectors. The continued FII investment, building on an already significant stake, indicates a positive outlook on the company’s role in India’s ongoing infrastructure and real estate development boom.
5. PC Jeweller: FII Stake Up 1.54%
FII Stake Increase: Rose from 4.92% in June to 6.46% in September 2025.
Current Price: Rs 11.7 (as of October 24, 2025).
PC Jeweller is a prominent name in the organized Indian jewellery retail sector, manufacturing and selling gold, diamond, and precious stone jewellery. With a network of 52 showrooms across 38 cities, it caters to retail customers through both online and offline channels. FIIs have increased their stake following a major operational turnaround, including a successful One-Time Settlement with its lenders that slashed its debt by approximately 50% in FY25 and a recent capital raise of Rs 11.7 billion.
6. Axita Cotton Limited: FII Stake Up 1.10%
FII Stake Increase: Rose from 2.64% in June to 3.74% in September 2025.
Current Price: Rs 78.8 (as of October 24, 2025).
Established in 2013 in Ahmedabad, Axita Cotton Limited is engaged in manufacturing, processing, trading, and exporting cotton bales, yarn, and seeds. The company operates modern ginning and pressing units that serve both domestic and international textile markets. The increased FII stake suggests a positive view on the company’s positioning within the robust Indian cotton and textile export industry, potentially benefiting from global supply chain shifts.
7. Jayaswal Neco Industries: FII Stake Up 1.03%
FII Stake Increase: Rose from 0.04% in June to 1.07% in September 2025.
Current Price: Rs 78.8 (as of October 24, 2025).
Jayaswal Neco Industries is a Chhattisgarh-based integrated steel and mining company with a five-decade legacy. It operates a 1 MTPA alloy steel plant and is uniquely self-sufficient, meeting 100% of its iron ore needs from two captive mines with licenses valid until 2052 and 2055. FII interest was likely triggered by a massive deleveraging effort, including refinancing high-cost debt, which slashed its finance costs and reduced net debt to Rs 24.8 billion by June 2025.
8. Tiger Logistics (India) Limited: FII Stake Up 0.18%
FII Stake Increase: Rose from 11.62% in June to 11.80% in September 2025.
Current Price: Rs 43 (as of October 24, 2025).
Founded in 2000, Tiger Logistics (India) Limited is a leading international logistics provider. It offers comprehensive freight forwarding, transportation, customs clearance, and supply chain solutions. The company serves a diverse clientele across industries like automotive, pharmaceuticals, FMCG, and textiles. The steady increase in FII holding, even if marginal, reflects a belief in the company’s ability to capitalize on India’s growing export-import trade and complex logistics needs.
9. Paramatrix Technologies Limited: Fresh FII Entry
FII Stake Increase: Rose by 0.96% in September 2025.
Current Price: Rs 80 (as of October 24, 2025).
Paramatrix Technologies Limited, established in 2004, is an IT software services company. It develops software applications and technology solutions for large and medium-sized enterprises, offering customized IT services to help businesses improve efficiency and scale their operations. The fresh entry of FIIs into the company’s shareholder roster indicates a newfound institutional interest in its business model and future growth prospects within the competitive IT services sector.
Data Source: BSE/NSE Shareholding Pattern Data for Q2 FY26 (https://www.nseindia.com/companies-listing/corporate-filings-shareholding-pattern)
Disclaimer: This article is for informational purposes only and is not investment advice. Please consult a qualified financial adviser before making any investment decisions.