Promoter stakes hit record low across m-caps as DIIs tighten grip: MOSL note

Promoter holdings in the Nifty 500 index have dropped to a record low of 49.5% as of March 2025, a Motilal Oswal strategy note has said. This broad-based dilution suggests that promoters may be looking to monetize holdings, deepening public float as well as liquidity.

The MOSL report adds that in the largecap space, promoter stakes have fallen to an all-time low of 47.6% (down 160 bps YoY), while in the midcap space, it is now at the second-lowest level of 54.9% (down 130 bps YoY). For the smallcap space, this remains subdued at 51.4% (down 30 bps YoY).

On the other hand, over past two decades, Domestic Institutional Investors (DIIs) have raised their stakes to historic highs in every segment, beating foreign institutional investors (FIIs). The note said DIIs have raised their holdings in 67% of the Nifty 500 companies, while FIIs reduced their stake in 48% of the companies.

DIIs increased stakes in 18 out of 24 sectors compared to the year ago, with the sharpest gains in Private Banks (+340 bps), Consumer Durables (+290 bps), and Utilities (+220 bps). FIIs saw their holding decline in most sectors, with the exception of IT and Consumer Durables.