Promoter Pledge Holding Update – June 2020

You are currently viewing Promoter Pledge Holding Update – June 2020
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By Monergise

The promoter pledged shareholding has become one of the most crucial indicators to track while making an investment decision. It has taken centre stage in the recent past owing to carnage witnessed in some of the front line stocks having high promoter pledged holding. The ongoing COVID-19 can only add to the worries of these stocks if the businesses/promoters are not able to raise capital or revive business to reduce their pledge holding.

 

Therefore, it is important to keep a track on which of your invested companies have their promoter holding pledged. The below table depicts the companies in which the promoters have increased, decreased or maintained their pledged holding vis-a-vis last quarter. Our universe of stocks is companies in BSE500 index.

Before going through our table, let us understand why do promoters opt for it?

Promoter pledging their holding is never a good idea, but certain promoters do opt for it to gain faster access to capital (keeping its holdings as collateral).

The money is either used by the promoter himself (to fund its other businesses or personal requirement) or it would be used to fund business operations or expansions. In any case, it is not a good sign for any investor if the pledged holding exceeds 30% of the promoter holding in the business. At the time of pledging, the lender and the promoter agree on a minimum contract value for the shares, but if there is an adverse event in the market and the stock price falls sharply, the value of collateral also shrinks. The consequence of this is to either put more shares as collateral or repay the debt. However, if the promoter is not able to do this, the lender can sell the shares in the open market leading to a sharp fall in stock prices.

So let’s begin with the ones wherein promoters have increased their pledged holding during the quarter vis-à-vis last quarter. Luckily they aren’t many this quarter.

CompanyJun-20Mar-20DifferenceDec-19Sep-19
D B Corp46.0240.45.6233.8238.48
Zee Entertainment20.8716.384.4918.5296
Ashok Leyland10.889.261.629.269.26
Jamna Auto Industries3.572.051.5200
Emami90.4889.241.2471.5869.29
Sun Pharma Advanced Research Company1.91.320.583.053.05

Below are the companies that have their promoter pledged holding same as compared to the previous quarter.

CompanyJun-20Mar-20Dec-19Sep-19
Jindal Stainless (Hisar)87.787.787.787.7
Deepak Fertilizers & Petrochemicals Corp75.7175.7177.50
Crompton Greaves Consumer Electricals65.5865.5864.0648.85
Kalpataru Power Transmission57.557.541.3841.85
Omaxe52.3252.3252.3351.16
Torrent Power48.5448.5448.5448.54
SpiceJet44.0144.0144.0139.36
Time Technoplast34.7634.7621.0316.72
Lemon Tree Hotels33.7633.7633.7633.76
Dilip Buildcon28.6428.6427.7927.79
India Cements27.1827.1827.2227.22
United Breweries18.218.218.218.2
Orient Cement16.0916.0913.3613.36
Orient Electric15.6115.6114.7514.75
Swan Energy15.0415.0417.4917.49
Dhanuka Agritech1414143.39
Shoppers Stop12.612.612.612.62
Va Tech Wabag12.4312.4312.4312.43
Delta Corp11.2611.267.327.32
Jyothy Labs8.538.538.5324.96
Infibeam Avenues7.537.537.537.9
Aurobindo Pharma6.176.174.994.2
Tata Motors3.953.953.954.67
Tata Communication3.93.93.93.19
Tata Power3.853.853.963.96
Atul3.763.763.763.92
Navin Fluorine International3.433.433.544.37
Tata Steel3.373.373.513.51
M & M3.043.041.683.07
TCS2.942.942.942.94
Tata Consumer2.712.713.993.99
The Ramco Cement1.971.971.971.97
Just Dial1.731.732.32.34
Team Lease Services1.231.231.231.22
Godrej Consumer0.660.6600
Cholamandalam Financial0.040.040.040.04
S H Kelkar & Company0.040.040.040.04
Tube Investments0.040.040.040.04
Finolex Indsustries0.020.020.020.02
Coromandel International0.010.010.010.01

In the below 51 companies, the promoters have reduced the pledged holding as compared to the previous quarter.

CompanyJun-20Mar-20DifferenceDec-19Sep-19
Balrampur Chini073.06-73.0673.060
Torrent Pharmaceuticals036.49-36.4936.4936.49
Adani Ports and SEZ28.758.25-29.5536.4140.28
Granules India8.6437.62-28.9830.2936.99
IndusInd Bank026.33-26.3326.3326.33
Parag Milk Foods24.8148.1-23.2935.6935.87
Suzlon Energy55.0276.34-21.3276.3476.34
Gateway Distriparks0.0919.81-19.7219.9319.93
Adani Transmission35.7853.63-17.8535.2943.93
Jindal Steel & Power57.2874.8-17.5265.5868.72
Adani Enterprise32.4249.79-17.373.631.91
Laurus Labs31.5645.22-13.6632.2731.69
HFCL55.4867.85-12.3768.7868.78
Uflex5.5816.67-11.099.559.55
Wockhardt26.4237.12-10.724.73.96
Dish TV India84.9393.46-8.5393.5193.75
Adani Green6.9314.7-7.7716.9742.35
AU Small Finance07.04-7.047.047.04
Edelweiss Financial Services12.8718.91-6.0415.9817.02
UPL1.927.96-6.042.322.32
Amara Raja Batteries05.93-5.935.935.93
Future Retail74.980.29-5.3957.7767.22
Sun TV Network0.164.69-4.533.533.53
NCC29.7334.18-4.4536.3736.68
Strides Pharma46.8450.93-4.0948.251.29
JSW Steel35.9339.79-3.8632.5250.16
Jindal Saw03.82-3.823.823.82
NOCIL11.8415.17-3.3317.6724.12
Max Financial Services91.5294.76-3.2471.5491.33
Sun Pharma 10.3513.22-2.8710.0710.41
JSW Energy51.1453.85-2.7137.1859.77
Apollo Tyres14.0616.27-2.2115.0215.02
Motherson Sumi11.5113.05-1.549.245.38
Ajanta Pharma16.1517.29-1.1416.8617.77
GMR Infrastructure75.2876.37-1.0972.373.81
Radico Khaitan3.534.55-1.024.554.55
Jubilant Foodworks2.713.61-0.92.892.54
Adani Power31.6432.46-0.8229.929.32
Bombay Burmah00.71-0.712.272.28
Future Consumer92.4592.97-0.5291.962.08
Manappuram Finance1.692.19-0.52.193.38
Chambal Fertilisers Chemicals24.9225.17-0.2521.2818.85
Godrej Industries5.886.07-0.1900
Asian Paints11.711.87-0.1712.5311.88
Varun Beverages00.12-0.120.130.13
Sobha20.3120.36-0.0520.3720.37
Jindal Stainless82.4682.48-0.0282.4882.48
EID Parry0.030.05-0.020.050.05
Carborundum Universal0.020.04-0.020.040.04
Apollo Hospitals36.6536.66-0.0167.3366.19
IRB Infrastructure Developers17.5717.58-0.010.250.25

Below are all the companies in which the promoters have pledged more than 30% of their holdings

CompanyJun-20Mar-20Dec-19Sep-19
Future Consumer92.4592.9791.962.08
Max Financial Services91.5294.7671.5491.33
Emami90.4889.2571.5869.29
Jindal Stainless (Hisar)87.787.787.787.7
Dish TV India84.9393.4693.5193.75
Jindal Stainless82.4682.4882.4882.48
Deepak Fertilizers & Petrochemicals Corp75.7175.7177.50
GMR Infrastructure75.2876.3772.373.81
Future Retail74.980.2957.7767.22
Crompton Greaves Consumer Electricals65.5865.5864.0648.85
Kalpataru Power Transmission57.557.541.3841.85
Jindal Steel & Power57.2874.865.5868.72
HFCL55.4867.8568.7868.78
Suzlon Energy55.0276.3476.3476.34
Omaxe52.3252.3252.3351.16
JSW Energy51.1453.8537.1859.77
Torrent Power48.5448.5448.5448.54
Strides Pharma46.8450.9348.251.29
D B Corp46.0240.433.8238.48
SpiceJet44.0144.0144.0139.36
Apollo Hospitals36.6536.6667.3366.19
JSW Steel35.9339.7932.5250.16
Adani Transmission35.7853.6335.2943.93
Time Technoplast34.7634.7621.0316.72
Lemon Tree Hotels33.7633.7633.7633.76
Adani Enterprises32.4249.793.631.91
Adani Power31.6432.4629.929.32
Laurus Labs31.5645.2232.2731.69

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Monergise

Monergise helps you learn and stay updated with the current market and investment trends which would enable you to make better investment decisions. Our team of finance professionals publishes articles on latest market trends, industry reports, stock analysis, investment planning, and personal finance. Our articles are also suitably designed to aid our readers towards better financial learning. We are a group of finance professionals having experience of more than 10 years in Indian markets.