Shares of Parsvnath Developers and Pipavav Defence today skidded by 20% each to their respective lowest permissible limits for the day, on concerns over their promoters having heavily pledged their shares.
Real estate firm Parsvnath saw its share price plummeting by 19.99% to Rs 58.25 within second of the opening trade. A circuit filter on the stock, which does not allow any movement beyond this level in a single day, locked any further decline and the stock closed at that level.
At the NSE also, the stock plummeted by 19.94% to hit its lower circuit at the exchange at Rs 57.60.
Marketmen said that a couple of large sell-trades were noticed on the counter at very low levels, which coupled with concerns over heavy-pledging by the promoters of their holding led to the huge fall in Parsvnath shares.
The promoters own about 70% stake in the company and have pledged nearly 71% of this holding. However, the level of promoter shares have come down from over 86% at the end of April-June quarter.
The value of the pledged shares, as on September 30, is currently worth nearly Rs 1,200 crore, which is roughly half the size of current market value of the entire company.
Marketmen said that shares of Pipavav Defence and Offshore Engineering Company also fell prey to concerns over share pledging by the promoters. The stock tanked 19.97%, hitting the lower circuit at Rs 55.50 on the BSE.
Promoters held 45% stake in the company as on September 30, out of which about 97% are pledged. The promoter pledging level for this company has also come down marginally from 99.6% as on June 30, 2011.
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