Feb 17, 2023
By: BI India BureauHere is a list of companies which saw a substantial change in their pledged holdings between September 2022 and December 2022 quarters, according to a Kotak Institutional Equities report.
Credit: Kotak-Institutional-Equities
The value of pledged promoter holdings stood at ₹2.2 lakh crore, which is about 0.83 percent of the total BSE 500 index’s market capitalisation, according to the report.
Credit: Kotak-Institutional-Equities
Pledging of shares is when the promoters of a company use their shares as collateral to fulfill their financial requirements.
Credit: Kotak-Institutional-Equities
Promoters of 87 companies in the BSE 500 Index have pledged a part of their holdings in the December 2022 quarter.
Credit: Kotak-Institutional-Equities
The brokerage 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.
Credit: Kotak-Institutional-Equities
Pledged holding as a percentage of the promoter holding increased marginally to 1.61 percent in the quarter ending December 2022 from 1.57 percent in the September 2022 quarter.
Credit: Kotak-Institutional-Equities
Adani group company Adani Ports & SEZ is also among Nifty50 companies with the highest promoter pledges.
Credit: Kotak-Institutional-Equities
Promoters of Max Financial Services and Thyrocare Technologies have the highest pledged holdings.
Credit: Kotak-Institutional-Equities
Promoters of Lloyd Metals, Happiest Minds and Wockhardt increased pledged holdings the most in the December quarter as compared to the September quarter.
Credit: Kotak-Institutional-Equities
Largest decline in pledged promoter holdings was seen in the case of Motherson Sumi Wiring, Deepak Fertilisers and GMR Airports.
Credit: Kotak-Institutional-Equities