Private promoter holding falls to 8-year low in June; DIIs, mutual funds continue to scale new highs

While ‘Indian’ private promoters share has gone down from 36.86 per cent to 32.56 per cent, ‘foreign’ promoters’ share has gone down from 8.28 per cent to 8.02 per cent during this period.

The share of private promoters in the Indian capital market declined to an eight-year low of 40.58 per cent as on June 30, 2025 from 40.81 per cent as on March 31, 2025, as per data from primeinfobase.com.

The previous low was witnessed in the quarter ending September 30, 2017 when the share of private promoters stood at 40.19 per cent. Over the last 13 quarters, their share has fallen by 455 basis points from 45.13 per cent on March 31, 2022.

Further, while ‘Indian’ private promoters share has gone down from 36.86 per cent to 32.56 per cent, ‘foreign’ promoters’ share has gone down from 8.28 per cent to 8.02 per cent during this period. Meanwhile, the share of the government as promoter increased to 9.39 per cent from 9.27 per cent during the quarter.

According to Pranav Haldea, Managing Director, PRIME Database Group, while promoter buying is always a positive sign, promoter selling can be due to a wide variety of reasons such as promoters taking advantage of bullish markets to take money off the table, strategic reasons like debt reduction, legacy planning, philanthropy, investment in other ventures and meeting Minimum Public Shareholding (MPS) requirement as also for personal expenses.

Relatively lower promoter holding in some of the recent IPO companies and overall institutionalisation of market are some of the other reasons behind this fall, he added.

According to Haldea, as long as promoters continue to hold sizeable stake after the sale with the sale not happening at a huge discount to market price and there being no significant change in the fundamentals of the company, there is no reason to worry.

After having overtaken foreign institutional investors (FIIs) in the March quarter, the share of domestic institutional investors (DIIs) reached yet another all-time high of 17.82 per cent as on June 30, 2025, up from 17.62 per cent as on March 31, 2025, following a net investment of Rs 1.68 lakh crore during the quarter ending June 2025.

The domestic mutual funds (MFs), flush with retail money coming through SIPs, continued to play a huge role in this with a net investment of Rs 1.17 lakh crore during the quarter, taking their share in companies listed on NSE also to yet another all-time high of 10.56 per cent as on June 30, 2025 (up from 10.35 per cent).

The domestic insurance companies too joined the party with a net buy of Rs 8,076 crore during the quarter even though their overall share went down from 5.40 per cent to 5.30 per cent. Also, AIFs net bought Rs 3,617 crore during the quarter while banks and PMS net sold Rs 10,704 crore and Rs 3,016 crore respectively.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.