These 15 companies in BSE 500 firms increased their promoter pledge holdings; know what it means for investors

Value of promoter pledged holding as a percentage of promoter holding increased to 1.6% in December 2021 quarter from 1.5% in the September quarter, data from Kotak Institutional Equities said in a note.

However, on a year-on-year basis, the promoter pledged holding as a percentage of promoter holding has come down.

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The aggregate pledged shares as a percentage of total promoter holding and of total holding in value terms (%) stood at 2.09 per cent at the end of December 2022 quarter, and 2.28 per cent at the close of the December 2019 quarter, data showed.

Promoters of 78 companies in the BSE-500 Index had pledged part of their holdings in the December 2021 quarter.

The value of pledged promoter holdings was Rs1.97 tn at the end-December 2021, which is about 0.81% of the total BSE-500 Index’s market capitalization, the report showed.

Promoter pledge is an important parameter used by analysts to gauge the health of the company but 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, said the Kotak note.

Companies in which promoters increased their pledged holdings in the December quarter on a QoQ basis include names like Max Healthcare, Solara Active Pharma Science, and Strides Pharma Science.

There are 7 companies in which promoters reduced their pledged holdings including names like HFCL, Delta Corp, Sun Pharma, NOCIL, Ashok Leyland and Emami.

Companies whose promoters pledged more than 90% of their holdings in the BSE500 index at the end of the December quarter include names like Thyrocare Technologies.

Companies whose promoters pledged 40-90% of their holdings in the BSE500 index include names like Jindal Steel & Power, Max Healthcare, IndusInd Bank, Wockhardt, SpiceJet, Max Financial Services, and Kalpataru Power etc.

Fresh promoter pledges in the December quarter were seen in companies like Max Healthcare, IIFL Wealth, Bajaj Electricals and Gujarat Fluorochemicals, highlighted the report.

Companies in which promoters released entire pledged holdings: HFCL and Delta Corp.

Companies in the Nifty-50 with more than 5% of pledged promoter holdings: Adani Ports & SEZ (15.3%), Asian Paints (7.6%), IndusInd Bank (45.5%), and JSW Steel (17.8%).

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