Stocks

Pledging of shares by promoters hits seven-year high in June

Our Bureau Mumbai | Updated on January 17, 2018 Published on August 22, 2016

BL05_safe.jpg

However pledging in terms of number of companies rise only 2.6%

Pledging of shares by promoters in 1,517 NSE-listed companies (including companies with no pledging) hit 7-year high as on 30th June 2016, according to Pranav Haldea, Managing Director of Prime Database.

The percentage of promoters’ holding pledged went up from 15.57 per cent a year ago to 16 per cent on 30th June 2016 and further up to 16.21 per cent as on 11th August 2016.

In value terms too, promoters’ share pledging saw an increase of 11.29 per cent on a year-on-year basis with the value of pledged shares going up to Rs 1.98 lakh crore as on 30th June 2016, which further increased to Rs.2.08 lakh crore in August.

As a percentage of total market capitalisation too, it went up from 8.39 per cent a year ago to 8.51 per cent and further increased to 8.64 per cent in August.

As on 30th June 2016, shares were pledged in as many as 509 of the 1,517 NSE-listed companies (further increased to 522 companies on 11th August 2016), up 2.6 per cent (from 496 companies a year ago).

Rise in or high pledging of shares is not considered as a good sign for investors as correction in the market price can lead to invocation and change in management, said Haldea.

According to Prime Database, there were as many as 31 companies in which the complete holding of the promoters was under pledge as on 30th June 2016.

Top five companies by value of pledged shares are Tata Consultancy Services, Adani Ports and Special Economic Zone,Cairn india, Zee Entertainment Enterprises and JSW Steel.

Published on August 22, 2016

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Sincerely,

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.