Promoter Pledge Holding Update
The promoter pledged shareholding has taken centre stage in the recent past owing to carnage witnessed in some of the frontline stocks having high pledged holding. The slowdown witnessed across sectors coupled with fall in stock prices has led certain promoters to increase their collateral shares with the bank. Firstly, promoter pledging their holding is never a good idea, but certain companies do opt for it to gain faster access to capital (keeping its share as collateral) in order to fulfil their obligations.
The money is either used by the promoter himself (to fund its other businesses or personal requirement) or it would be used for the company itself. 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. The consequence of not repaying the debt can lead to the bank selling its shares in the open market leading to a sharp fall in stock prices.
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 all the companies in BSE500. Before going through our table, please note below table depicts change to the second decimal (which means even the slightest change is covered). This article will be published every quarter, to help you stay ahead. Subscribe Now and get Two Multibagger Stock Ideas absolutely Free. Click here to Subscribe
Increase in Promoter Pledge Holding
There are 24 companies in which promoters increased their pledged holdings. Some of them include Deepak Fertilizers, Balrampur Chini, Future Consumer, Zydus Wellness and Wockhardt
|Crompton Greaves Consumer||64.06||48.85||15.21|
|Lakshmi Vilas Bank||35.02||31.36||3.66|
|Team Lease Services||1.23||1.22||0.01|
Promoter Pledged Holding Maintained
There are 47 companies in which promoters pledged holdings was maintained. Some of them include DHFL, Jindal Stainless Hissar, Jindal Stainless, DCM Shriram, Suzlon Energy, HFCL, Torrent Power, Torrent Pharma, Lemon Tree Hotel and Chalet Hotels.
|Jindal Stainless Hissar||87.7||87.7||0|
|Lemon Tree Hotel||33.76||33.76||0|
|Va Tech Wabag||12.43||12.43||0|
|AU Small Finance Bank||7.04||7.04||0|
|Amara Raja Batt.||5.93||5.93||0|
|Tata Global Beverages||3.99||3.99||0|
|Sun TV Network||3.53||3.53||0|
|The Ramco Cement||1.97||1.97||0|
|IRB Infrastructure Developers||0.25||0.25||0|
|S H Kelkar & Company||0.04||0.04||0|
Promoter Pledged Holding Reduced
There are 44 companies in which promoters reduced their pledged holding. Some of them include Mphasis, Zee Entertainment, Bajaj Consumer, Yes Bank, Adani Enterprise, Centrum Capital, Adani Green, JSW Energy and Max Financial Services.
|Adani Green Energy||16.97||42.35||-25.38|
|Max Financial Services||71.54||91.33||-19.79|
|D B Corp||33.82||38.48||-4.66|
|M & M||1.68||3.07||-1.39|
|Edelweiss Financial Services||15.98||17.02||-1.04|
|Navin Fluorine International||3.54||4.37||-0.83|
|Parag Milk Foods||35.69||35.87||-0.18|
|Bombay Burmah Trading Corp||2.27||2.28||-0.01|
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Read More: FII has increased holding in nearly 50 companies over the last four quarters. Read more to find out.