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Promoter Pledging Decline In March: Kotak

Promoter Pledging Decline In March: Kotak

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  8 May 2019 8:08 AM GMT

New Delhi: According to Kotak pledged holdings of the BSE-500 stocks shows that the percentage of a pledged promoter or majority shareholder holdings by value has come down marginally in the March 2019 quarter in comparison to the December quarter.

The percentage of pledged promoter holdings declined to 2.83 percent in the March 2019 quarter compared to 2.98 percent in December 2018 quarter, the Kotak Equities report said on Q4 Pledged shareholding report.

Outstanding promoters pledged shares were Rs 1.95 lakh crore, which is about 1.38 percent of the total BSE-500 Index’s market capitalization in March 2019. Promoters of 116 companies pledged their holdings among BSE-500 Index. Six companies had more than 90 percent of their promoter holdings pledged.

The report said that pledging of shares does not necessarily imply that a company or a promoter is under financial stress; banks (lenders) could have sought additional security in the form of promoter shares.

The main highlights of March 2019 pledged holding disclosures as per the report are companies whose promoters pledged more than 95 percent of their holdings are CG Power and Industrial, Reliance Infrastructure, Reliance Capital and Sterlite Technologies.

The highest increase in pledged promoter holdings is JK Tyre & Industries, Reliance Capital, Reliance Infrastructure, Dish TV India and VA Tech Wabag. (IANS)

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