Promoter pledging hits three-year high in August at 1.86% of market cap

Value of pledged shares soared 56% to Rs 2.77 trillion in August from Rs 1.78 trillion at the end of July

Shares pledged by promoters as a percentage of India’s total market capitalisation rose to 1.86 per cent — the most since April 2017 — at the end of August 2020.

The value of pledged shares soared 56 per cent to Rs 2.77 trillion in August, from Rs 1.78 trillion at the end of July, according to data provided by primeinfobase.com.

Pranav Haldea, managing director, PRIME Database, said the increase was driven by creation of pledges in Hindustan Zinc and Vedanta.

Close to 13 companies witnessed an increase