List of cos with promoter pledged shares expands

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List of cos with promoter pledged shares expands

Nearly seven companies have reported data on pledged shares with financial institutions on Tuesday. The number of companies which have been disclosing have been going higher as the market is moving and there have been around 14-15 companies, which have now reported the pledged shares. CNBC-TV18’s Varinder Bansal reports.

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Nearly seven companies have reported data on pledged shares with financial institutions on Tuesday.

The number of companies, which have been disclosing have been going higher as the market is moving and there have been around 14-15 companies, which have now reported the pledged shares. CNBC-TV18's Varinder Bansal reports.

There are several companies which are reporting data, but if this provision by Securities & Exchange Board of India (Sebi) was not there, one would have not known that in some of the companies nearly 100% of promoter holding is pledged. That is the kind of pledging or the kind of leverage that some of the promoters have done. That is clearly worrisome in some of the companies, where over 50% is a natural thing- companies like Micro Ink and MRO TEK is where nearly 100% of promoter holding is placed.

Micro Ink is a German company - HM Holding, which is one of the promoter companies bought this company from the earlier promoter. They have pledged 70% equity and the promoter holding is 75%.

MRO TEK, again the same way. Promoters have pledged nearly 73 lakh shares, which is around 38% equity and the promoter holding is 78%.

Balaji Telefilms is another case, where Jitendra Kapoor, who is one of promoters in the company, has pledged nearly 7% equity in the company and the promoter holding is nearly 40%. With regards to Aban Offshore and Shree Renuka Sugar , around 8% equity is pledged, but some of the companies like Dinesh Housing the promoters have pledged nearly 30% equity and the total promoter holding is 60%.

So, in these cases, the percentage of promoter holding is pledged is over 50% and some of the companies it is 100%, but yet market is awaiting for some of the prominent companies reporting pledged shares. There are some of the companies in the index, which people are watching out for and it is likely that when these companies report pledged shares, there could be some kind of disturbance in some of the stock prices. But yet the data, which is revealed, leaves a bad taste in the mouth of some of the investors.

Nagarjuna Constructions is a company where over 50% of promoter holding was pledged and the major reason for pledge was increasing stake promoter's stake in the company. The promoters increase stake by 2% at a price of Rs 100, the stock has come down to Rs 15, and that is something which people will not like.

The other case is Peninsula Land , where promoters have pledged nearly 15% equity, but the important reason is that this was second collateral, which was kept against the primary collateral - land and buildings.