Value of shares pledged by promoters of BSE-listed companies reached around Rs 2.57 lakh crore at April-end, a rise of 7.5 per cent over the preceding month, according to exchange data.
Till April this year, pledging of shares by promoters was seen in as many as 3,142 out of 5,043 BSE-listed companies with a market capitalisation of over Rs 152 lakh crore.
Share pledging is typically done by promoters to raise funds either for the same company or for financing other projects.
Decline in the level of share pledging may indicate scaling down in stress as high pledging levels are not considered a good sign by investors as a downturn in the market price can lead to invocation and change in management.
The value of shares pledged by BSE-listed companies rose to Rs 2,57,744 crore as on April this year from Rs 2,39,611 crore as on March, indicating an increase of 7.5 per cent, according to the exchange data.
Promoters of 448 companies pledged up to 30 per cent of their respective holdings to the tune of Rs 1.44 lakh crore, while 152 firms saw 30-50 per cent of the promoters' holding worth Rs 43,888 crore being pledged in April.
Further, there were 81-odd companies in which 50-75 per cent of the promoter-holding worth Rs 28,255 crore was pledged and promoters of three firms pledged up to 90 per cent of their respective stakes valued Rs 116 crore.
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