Promoter holding and pledging
The share of a company owned by its founders or controlling group.
What is Promoter holding and pledging?
In India most listed companies have an identifiable promoter group, the founders, family or parent company that controls them. Listed companies disclose shareholding every quarter, split into promoters, FIIs, DIIs and the public. Changes in the promoter stake are closely watched: promoters buying suggests confidence; promoters selling or pledging shares can signal stress.
Formula
How to read it
- SEBI's minimum public shareholding rule caps promoters at 75% for most listed companies.
- An increase can come from open-market buying, preferential allotment or warrant conversion. The shareholding table shows which.
- Pledged promoter shares can be sold by lenders if the price falls, which adds to downside pressure.
Common mistakes
- Reading a fall in promoter percentage as selling when it is dilution from a fresh share issue.
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Promoters who increased their stake 134
| Stock | Promoter % | Promoter Δ | P/E |
|---|---|---|---|
| GAYAPROJGayatri Projects Limited | 23.6% | +19.62 pp | 0.46 |
| BLISSGVSBliss GVS Pharma Limited | 50.1% | +14.68 pp | 40.39 |
| ASTERDMAster DM Quality Care Limited | 53.8% | +13.40 pp | 172.65 |
| GABRIELGabriel India Limited | 66.3% | +11.29 pp | 76.31 |
| MSPLMSP Steel & Power Limited | 45.1% | +9.88 pp | 46.38 |
| IOLCPIOL Chemicals and Pharmaceuticals Limited | 62.3% | +9.66 pp | 27.33 |
| SHREDIGCEMShree Digvijay Cement Co.Ltd | 63.7% | +9.05 pp | — |
| SGFINSG Finserve Limited | 57.0% | +8.57 pp | 24.75 |
High promoter holding (65%+) 429
| Stock | Promoter % | Promoter Δ | ROE |
|---|---|---|---|
| KIOCLKIOCL Limited | 99.0% | +0.00 pp | 2.2% |
| IDBIIDBI Bank Limited | 94.7% | -0.01 pp | 11.5% |
| RAJRILTDRaj Rayon Industries Limited | 94.1% | -0.01 pp | 30.9% |
| PSBPunjab & Sind Bank | 93.8% | +0.00 pp | 10.3% |
| IOBIndian Overseas Bank | 92.4% | -2.17 pp | 18.0% |
| UCOBANKUCO Bank | 90.9% | +0.00 pp | 8.6% |
| ITIITI Limited | 90.0% | +0.00 pp | 13.8% |
| MBECLMcnally Bharat Engineering Company Limited | 90.0% | +0.00 pp | 641.2% |