GMR airports to Emami: Companies with highest pledged holdings by promoters

1.22% of promoter holdings was pledged at the end of the September quarter compared with 1.36% in the June quarter

In some signs of easing stress among company promoters, the level of promoter pledged shares of BSE 500 companies has declined to 1.22% in the September 2023 quarter from 1.36% in the June 2023 quarter, as per an analysis by Kotak Securities. 

"The value of the promoter (majority shareholder) pledged holding as a percentage of the promoter holding declined to 1.22% in the September 2023 quarter from 1.36% in the June 2023 quarter," it said. 

Promoters of 82 companies in the BSE-500 Index have pledged part of their holdings in the September 2023 quarter. 

The value of pledged promoter holdings stood at Rs 1.8 trillion (which is about 0.61% of the total BSE-500 Index’s market capitalization). 

Point to note: 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.

Highlights of the September 2023 quarter pledged holding disclosures

• Companies whose promoters pledged more than 75% of their holdings: None.

• Substantial increase in pledged promoter holdings: TTK Prestige, IndusInd Bank, The Ramco Cements, among others.

• Companies in which pledged promoter holdings declined: Suzlon Energy, Max Financial Services, Jindal Steel & Power, Sobha and Emami, among others.

• Fresh promoter pledges: TTK Prestige.

• Companies in which promoters released entire pledged holdings: Suzlon Energy, Sobha and Dixon Technologies.

• Companies in the Nifty-50 with more than 5% of pledged promoter holdings: Apollo Hospitals (16.1%), Asian Paints (6.5%), IndusInd Bank (47.3%) and JSW Steel (14.1%).

• The report compares changes in pledged holdings between June 2023 and September 2023 quarters. 

Promoters of GMR Airports, Max Financial Services and Medplus Health Services have high pledged holdings
 

Companies with the highest pledged holdings by promoters

Others on the list include IndusInd Bank, Kalpatru Projects, Chalet Hotels, Sterling and Wilson, Indus Towers, Chambal Fertilisers, India Cements, Hindustan Zinc, Swan Energy, Lloyds Metals, Aurobindo Pharma and Emami. 

Companies with the highest pledged holdings by promoters as a proportion of total shares

GMR Airports, Sterling & Wilson and Chalet Hotels have the highest pledged holdings in overall holdings

Companies with biggest increase/decrease in promoters’ pledged holdings in September 2023 quarter

Promoters of TTK Prestige, IndusInd Bank and The Ramco Cements increased pledged holdings the most during the September quarter  while the largest decline in pledged promoter holdings has been witnessed in the case of Suzlon Energy, Max Financial Services and Jindal Steel and Power

List of companies in which promoters reduced their pledged holdings

Disclosure: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd