Promoters’ pledged shareholding falls to 1.64% in Q4; value of pledged shares at Rs 1.6 lakh cr

There was a widespread decline in promoter pledged holdings in nearly all Nifty 50 corporations, besides IndusInd Financial institution.

India Inc’s efforts to chop debt have seemingly given seen outcomes, with a widespread fall in promoters’ pledged shareholdings in nearly all Nifty 50 corporations within the January-March quarter. What’s extra, no BSE 500 firm now has greater than 90% of their promoter shareholding pledged, brokerage agency Kotak Institutional Equities stated in a current report. Indian corporations have been working in the direction of bettering steadiness sheets and trimming debt within the final one 12 months as the price of funds moved to historic lows.

Promoters of Suzlon Energy, Future Consumer, and Max Financial Services have the best pledged holdings. Amongst Nifty 50 corporations, solely IndusInd Bank didn’t see a fall in pledged promoter shareholding, the report stated. Excessive promoter pledging doesn’t point out an organization is beneath monetary stress.

Fall in promoters’ pledged shareholding in BSE 500 in January-March:

* Pledged holding all the way down to 1.64% in January-March from 2.09% in October-December
* Worth of promoter pledged holdings Rs 1.6 lakh crore, about 0.81% of the whole BSE 500 Index’s market capitalization
* Zero firm with over 90% of promoter holding pledged, down from 5 within the earlier quarter
* Three corporations with 75-90% of promoter holding pledged, down from seven within the earlier quarter
* Promoters of 85 out of BSE 500 corporations pledged a part of their shareholdings.

High corporations with promoter pledges:

* Suzlon Power – 88.5% of the whole promoter shareholding
* Future Client – 88.4%
* Max Monetary – 84.5%

In worth phrases…

* Hindustan Zinc – Rs 17,100 crore
* Adani Ports & SEZ – Rs 14,500 crore
* Asian Paints – Rs 12,100 crore

Largest decline in pledged promoter holdings

* Adani Ports: from 38.2% to 16%
* Crompton Greaves: from 65.6% to 18.3%
* Adani Transmission, Laurus Labs, Future Retail, JSW Energy, and Adani Enterprises are a number of the different corporations the place promoter pledging was decreased considerably.

IndusInd Financial institution raises promoter pledges

IndusInd Financial institution had no promoter pledges on the finish of December 2020, however by March-end pledges made 36.4% of the promoter shareholding. Aurobindo Pharma, Aster DM Healthcare, Wockhardt, Ashok Leyland, and Deepak Fertilisers all noticed a rise in promoter share pledging.