Promoters of BSE 500 firms raise number of pledged shares by 23% in 2018

Analysts say the rise in pledged shares is on account of the recent decline in the broader market even as the large-cap or index stocks have held their ground

Promoters have raised the number of shares pledged with their lenders as collateral for borrowing by 23 per cent on a year-on-year (YoY) basis.

At the end of the December 2018 quarter, promoters of BSE 500 companies had pledged 15.7 billion equity shares, against around 12.8 billion equity shares at the end of the December 2017 quarter.

In rupee terms, promoter-owned shares worth nearly Rs 2 trillion were pledged at the end of the December 2018 quarter, up 2.6 per cent on a YOY basis. 

The pledged shares represented around 15.2 per cent of the promoters’ stake in the 111 BSE 500 companies,