Share pledge by promoters of commodity firms increase after pandemic

Data collated by BS Research Bureau shows Hindustan Zinc and Vedanta have topped the list of companies where the promoters' pledged stake is the highest as of June-end

While a large number of top-rated Indian companies are managing stress well, some are grappling with liquidity stress. This is because more than half of the shares held by the promoters, especially in the metals and mining sectors, were pledged in the June quarter with the lenders, an analysis by India Ratings shows.

“There are pockets of stress building up in 11 entities wherein 50 per cent or more shares held by the promoter or promoter group were pledged as of June quarter of financial year 2023. Liquidity is tagged as stretched/poor across rating agencies,” India Ratings said without disclosing