These 6 stocks saw doubling of promoter holding, share price over 3 years
Moneycontrol analysed BSE-listed companies over a three-year period in which promoters doubled their holdings.
Promoters are usually major shareholders in their companies and back up their faith in the business by increasing stake in them. For investors, this is a further affirmation of the company's growth prospects.
According to SEBI norms, a promoter can buy up to 5 percent equity in his company in any particular year from the stock market through the creeping acquisition route. He can increase his stake up to a maximum of 75 percent. However, if the company does make an acquisition or opts for a fresh preferential issue then promoters' holding can go over and above the prescribed 5 percent limit.
Moneycontrol analysed BSE-listed companies over a three-year period in which promoters doubled their holdings. As a filter, we selected companies with a market cap of over Rs 1oo crore.
While 19 companies witnessed a doubling of promoter stake, 6 stocks doubled their returns in the last three years. Stocks include Moschip Semiconductor, Alankit, Fortune Financial Services, Ram Minerals, Monarch Networth and Tide Water Oil.Follow @riteshpresswala