​Adani Ports, JSW Steel, IndusInd Bank top Nifty50 list with highest promoter pledges

Feb 17, 2023

By: bhakti.makwana@timesinternet.in

Credit: Kotak Institutional Equities

​Pledged companies​

​Here 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

Value of pledged promoter holdings stood at ₹2.2 lakh crore

​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

What are pledged shares?

​Pledging of shares is when the promoters of a company use their shares as collateral to fulfill their financial requirements.​

Credit: Kotak Institutional Equities

Pledged holdings in BSE 500

​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

Pledging shares not always a negative

​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

Percentage of promoters’ pledged holdings has increased

​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

Nifty50 companies with highest pledged promoter holdings

Adani group company Adani Ports & SEZ is also among Nifty50 companies with the highest promoter pledges.

Credit: Kotak Institutional Equities

Companies with over 50 percent pledged holdings among BSE 500

​Promoters of Max Financial Services and Thyrocare Technologies have the highest pledged holdings.​

Credit: Kotak Institutional Equities

Companies which saw a substantial increase in pledged promoter holdings

​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

List of companies in which pledged promoter holdings declined

Largest decline in pledged promoter holdings was seen in the case of Motherson Sumi Wiring, Deepak Fertilisers and GMR Airports.

Credit: Kotak Institutional Equities

The best performing IPO of 2022, Adani Wilmar, is almost out of Nifty Midcap 100