Promoter pledged holdings drop in March quarter; Kalpataru Projects, Bharat Forge, GMR Airports see biggest decline

According to a report by Kotak Institutional Equities, the pledged holdings of BSE-500 stocks shows that the value of the promoter pledged holding as a percentage of the promoter holding declined to 1.10% in the March 2024 quarter from 1.17% in the December 2023 quarter.

The value of pledged promoter holdings stood at ₹1.96 lakh crore, about 0.56% of the total BSE-500 Index’s market capitalization. 

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The promoters of Bharat Forge, Lemon Tree Hotels, and Tata Communications released their entire pledged holdings from 7.1%, 3.3%, and 3.1%, respectively in the December quarter.

Kalpataru Projects saw the largest decline of 11% in its pledged promoter holdings to 31.5% from 42.5% in the previous quarter. GMR Airports cut its pledged holdings to 58.2% from 63.4%, while Swan Energy slashed its pledged holdings by 3.1% to 18.4%.

On the contrary, promoters of Max Financial Services, Eris Lifescience, Ashok Leyland, Jubilant Foodworks and Lloyd Metals, among others, increased pledged holdings the most during the March quarter.

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In the Nifty 50 pack, companies with more than 5% of pledged promoter holdings include Apollo Hospitals (16.1%), Asian Paints (7%), IndusInd Bank (45.5%) and JSW Steel (15.2%), as per the report.

Overall, promoters of 73 companies in the BSE-500 Index have pledged part of their holdings in the March 2024 quarter. Moreover, none of the companies saw their promoters pledging more than 75% of their holdings and there were no fresh promoter pledges made in the March quarter.

However, it is to be noted that the pledging of shares does not necessarily imply that a company or a promoter is under financial stress. 

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Published: 10 May 2024, 11:43 AM IST