Promoter Pledge Holding Update – Must Read

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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

Company NameDec-19Sept-19Difference
Deepak Fertilizers77.5077.5
Balrampur Chini73.06073.06
Future Consumer91.962.0829.82
Zydus Wellness27.31027.31
Crompton Greaves Consumer64.0648.8515.21
Dhanuka Agritech143.3910.61
Time Technoplast21.0316.724.31
Motherson Sumi9.245.383.86
Lakshmi Vilas Bank35.0231.363.66
Chambal Fertilizers21.2818.852.43
Gayatri Projects99.9997.622.37
Future Lifestyle99.7897.422.36
Apollo Hospitals67.3366.191.14
Aurobindo Pharma4.994.20.79
Asian Paints12.5311.880.65
Laurus Labs32.2731.690.58
Adani Power29.929.320.58
Jubilant Foodworks2.892.540.35
Bombay Dyeing0.0500.05
Team Lease Services1.231.220.01
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.

Company NameDec-19Sept-19Difference
Jindal Stainless Hissar87.787.70
Jindal Stainless 82.4882.480
DCM Shriram76.6576.650
Suzlon Energy76.3476.340
Torrent Power48.5448.540
Torrent Pharma36.4936.490
Lemon Tree Hotel33.7633.760
Chalet Hotels32.1232.120
Dilip Buildcon27.7927.790
India Cements27.2227.220
IndusInd Bank26.3326.330
Sobha 20.3720.370
Gateway Distriparks19.9319.930
United Breweries18.218.20
Swan Energy17.4917.490
Apollo Tyres15.0215.020
Orient Electric14.7514.750
Orient Cement13.3613.360
Va Tech Wabag12.4312.430
Ashok Leyland9.269.260
Delta Corp7.327.320
AU Small Finance Bank7.047.040
Amara Raja Batt.5.935.930
Radico Khaitan4.554.550
Arvind Fashions4.074.070
Tata Global Beverages3.993.990
Tata Power3.963.960
Jindal Saw3.823.820
Sun TV Network3.533.530
Tata Steel3.513.510
The Ramco Cement1.971.970
IRB Infrastructure Developers0.250.250
Varun Beverages0.130.130
EID Parry0.050.050
Carborundum Universal0.040.040
Chola Financial0.040.040
S H Kelkar & Company0.040.040
Tube Investments0.040.040
Finolex Inds.0.020.020
Coromandel International0.010.010
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.

Company NameDec-19Sept-19Difference
Zee Entertainment18.5296-77.48
Bajaj Consumer062.83-62.83
Yes Bank2.5935.05-32.46
Adani Enterprise3.631.91-28.31
Centrum Capital38.7664.43-25.67
Adani Green Energy16.9742.35-25.38
JSW Energy37.1859.77-22.59
Max Financial Services71.5491.33-19.79
JSW Steel32.5250.16-17.64
Jyothy Labs8.5324.96-16.43
Reliance Capital80.9196.39-15.48
Reliance Infra85.6998.11-12.42
Sadbhav Engineering30.3141.01-10.7
Future Retail57.7767.22-9.45
Max India76.0384.83-8.8
Adani Transmission35.2943.93-8.64
Granules India30.2936.99-6.7
Reliance Power76.8382.53-5.7
D B Corp33.8238.48-4.66
Adani Ports36.4140.28-3.87
Jindal Steel65.5868.72-3.14
Strides Pharma48.251.29-3.09
GMR Infra72.373.81-1.51
M & M1.683.07-1.39
Manappuram Finance2.193.38-1.19
Edelweiss Financial Services15.9817.02-1.04
Ajanta Pharma16.8617.77-0.91
Navin Fluorine International3.544.37-0.83
Tata Motors3.954.67-0.72
Kalpataru Power41.3841.85-0.47
Infibeam Avenues7.537.9-0.37
Sun Pharma10.0710.41-0.34
Jain Irrigation49.9550.26-0.31
Dish TV93.5193.75-0.24
Parag Milk Foods35.6935.87-0.18
Shilpa Medicare9.779.88-0.11
Just Dial2.32.34-0.04
Shoppers Stop12.612.62-0.02
Bombay Burmah Trading Corp2.272.28-0.01

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Read More: FII has increased holding in nearly 50 companies over the last four quarters. Read more to find out.

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