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Promoter pledging spikes in firms belonging to debt-laden groups

The companies with high promoter pledging also saw a sharp fall in their share prices; market experts say companies with high pledging have seen sharp selling

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The value of promoter pledged shares as share of BSE market-cap increased from 1.32 per cent at the end of December quarter, to 1.37 per cent at March-end

Jash Kriplani Mumbai

3 min read Last Updated : May 22 2020 | 1:31 AM IST

The companies of debt-laden business groups saw a spike of 10-20 percentage points in promoter pledging in the March quarter, even as the overall value of shares pledged declined amid the market sell-off.

According to an analysis of the data from Capitaline, the value of promoter pledged shares declined 25 per cent from ~2.05 trillion at the end of the December quarter to ~1.54 trillion at March-end.

However, the value of promoter pledged shares as a share of BSE market-cap increased from 1.32 per cent at the end of Q3 to 1.37 per cent as of March 31.

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Topics : pledged shares Promoter stake promoter holdings Private debt

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