Promoters of 69 BSE-500 Companies Pledged Shareholding in December Quarter | Latest India News & Pledged Shares Analysis
Promoters of 69 BSE-500 Companies Pledged Shareholding in December Quarter | Latest India News & Pledged Shares Analysis
The latest India news reveals significant movements in the Indian stock market, with a sharp decline in Sensex and Nifty over the past five months. This market fluctuation has led to concerns among investors, particularly those dealing in small and mid-cap stocks. While some investors face negative returns, several promoters have leveraged their holdings by either offering shares through IPOs or pledging them as collateral for financial gains. If you want to stay updated with the latest stock market updates, check Moneycontrol Markets.
Promoter Pledged Holdings Decline in BSE-500 Companies
In the October-December 2024 quarter, the overall percentage of pledged promoter shareholding in BSE-500 companies decreased slightly from 0.87% to 0.84%. However, promoters of 69 companies within the BSE-500 index pledged shares, with a total value of Rs 1.63 lakh crore, accounting for 0.4% of the total market capitalization of the index.
Highest Quarterly Decline in Promoters’ Pledged Share Holdings
Below is a table showing the highest quarterly decline in pledged holdings:
| Company | Pledged Holding (Sep 2024) | Pledged Holding (Dec 2024) | Decline (%) |
|---|---|---|---|
| Swan Energy | 15.2% | 10.5% | -4.7% |
| Krishna Institute of Medical Sciences | 12.8% | 8.3% | -4.5% |
| Sun Pharma Advanced Research | 10.0% | 5.2% | -4.8% |
| Aurobindo Pharma | 18.3% | 13.7% | -4.6% |
| Chambal Fertilizers | 20.0% | 14.5% | -5.5% |
Key Companies with Increased Pledged Holdings
Several companies saw an increase in pledged shareholding during the October-December 2024 quarter:
- IndusInd Bank: Increased from 45.5% to 50.9%
- Ashok Leyland: Increased from 27.2% to 30.1%
- Anand Rathi Wealth
- Anupam Rasayan
- Laurus Labs
For expert insights into pledged shareholding risks, visit Economic Times Markets.
Companies with Decreased Pledged Holdings
On the other hand, some companies reduced their pledged holdings:
- Krishna Institute of Medical Sciences
- Sun Pharma Advanced Research
- Aurobindo Pharma
- Chambal Fertilizers
- Swan Energy
Companies such as Sun Pharma Advanced Research and UPL have completely released their pledged shares, signaling a stronger financial position.
Top Companies with Highest Pledged Holdings
Some promoters have pledged a significant portion of their holdings. The highest pledged shareholding percentages include:
- Medplus Health Services: 55.2%
- IndusInd Bank: 50.9%
- JSW Steel: 14.1%
- Apollo Hospitals: 13.5%
- Asian Paints: 9.2%
For more details on India’s financial developments, visit Latest India News.
Value of Pledged Promoter Holdings
In terms of value, the highest pledged promoter holdings in the BSE-500 index include:
- Asian Paints: Rs 10,600 crore
- GMR Airports: Rs 16,100 crore
- Hindustan Zinc: Rs 17,200 crore
- JSW Steel: Rs 13,900 crore
- Ashok Leyland: Rs 10,000 crore
- Kalyan Jewellers: Rs 9,600 crore
What Does This Mean for Investors?
A pledged share does not always indicate financial distress. Companies pledge shares to secure additional financing. However, a high percentage of pledged holdings can indicate potential risk, particularly if stock prices decline, triggering margin calls from lenders.
Investors should closely monitor pledged shareholding levels, as excessive pledging may indicate liquidity concerns for a company. Thorough research and portfolio diversification help mitigate risks.
Post Comment