Exclusive Webinar :Don't miss the latest webinar on Global Investing with Passive Products on June 22, 11am
you are here: HomeNewsBusiness

Promoters pledged shareholdings dip to 1.64% in Q4 from 2.09% in Q3: Report

The pledged holding of the BSE-500 index shows that the value of pledged promoter holdings as a percentage of promoter holding declined to 1.64 in the March quarter from 2.09 in the December 2020 quarter.

May 11, 2021 / 10:05 PM IST
Representative Image

Representative Image

Faster-than-expected recovery from the pandemic induced disruptions and the resultant improvement in balance sheets in the second half of FY21 have helped India Inc promoters to redeem their pledged shares, according to a brokerage analysis. The pledged holding of the BSE-500 index shows that the value of pledged promoter holdings as a percentage of promoter holding declined to 1.64 in the March quarter from 2.09 in the December 2020 quarter, according to a Kotak Institutional Equities analysis.

When looked at from a percentage of the overall promoter shareholding and the pledged holding, GMR Infrastructure (72.8), Omaxe (63.8) and Sterling & Wilson (53.7) were leading the chart. Companies with the highest promoter pledged holdings as of March 2021 include Suzlon Energy (88.5 per cent), Future Consumer (88.4) and Max Financial Services (88.4), GMR Infrastructure (72.8), and Omaxe (63.8).

KPTL Q4 profit zooms to Rs 187 crore

The other firms with high promoter pledged shares are Sterling & Wilson (53.7), Future Retail (52), Dish TV (51.2) Kalpataru Power Transmission (50.8), Crompton Greaves Consumer (47.3), HFCL (44.7) Spicejet (43.9) Jindal Steel & Power (41.7), Indusind Bank (36.4), Emami (32.9), Adani Power (29.1), Apollo Hospitals (27.9), JSW Energy (25.4), and United Breweries (18.2).

The value of these promoter pledged holdings was Rs 1.6 lakh crore as of the March quarter, which is about 0.81 per cent of the total BSE-500 index's market capitalisation, the brokerage said on Tuesday. Similarly, there was a widespread decline in pledged promoter holdings in almost all the Nifty-50 companies, except for IndusInd Bank where it increased.


COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more

However, it has to be kept in mind that pledging of shares does not necessarily imply that a company or a promoter is under financial stress; and that lenders could have sought additional security in the form of promoter shares. Significantly, there was not a single company where promoters pledged more than 90 per cent of their holdings. However, there was a substantial increase in pledged promoter holdings in IndusInd Bank, Aurobindo Pharma, Aster DM Healthcare, Wockhardt and Ashok Leyland, among others.

Major companies in which share pledge declined include Adani Ports & SEZ, Crompton Greaves Consumers, Adani Transmission, Time Technoplast and Laurus Labs, among others, while Aster DM Healthcare and IndusInd Bank saw fresh pledging, the report said, adding Dhanuka Agritech promoters had released the entire pledged holdings during the quarter. From the Nifty-50 index where promoters redeemed a portion of their pledged holdings include Adani Ports & SEZ, Asian Paints, JSW Steel, Sun Pharmaceuticals, Tata Consumer, Tata Motors, Tata Steel and TCS.

Nifty-50 stocks with over 5 per cent of pledged promoter holdings include Adani Ports & SEZ (16 per cent), Asian Paints (9.4), IndusInd Bank (36.4), JSW Steel (17.7) and Sun Pharma (8.6), among others.
first published: May 11, 2021 10:05 pm

stay updated

Get Daily News on your Browser