SME Times is powered by   
Search News
Just in:   • Dec gems, jewellery exports up 29% against pre-pandemic 2019  • Startups seek friendly policies, tax incentives  • Increase regulatory focus on cryptocurrency: Pre-Budget survey  • Shree Cement to decide on FY22 interim dividend on Feb 4 Board meet  • Cuba maintains stable rate of daily Covid-19 infections 
Last updated: 23 Aug, 2016  

NSE.Thmb.jpg Pledging of shares by NSE-listed companies' promoters at 7-year high

NSE.9.jpg
   Top Stories
» Dec gems, jewellery exports up 29% against pre-pandemic 2019
» Startups seek friendly policies, tax incentives
» Relief to individuals expected to mitigate inflation, unemployment
» Enhancement in basic income tax exemption limit of Rs 2.5 lakh highly awaited
» 'Indian MSMEs have manufacturing cost advantage in global value chain'
SME Times News Bureau | 23 Aug, 2016
Not considered a good sign by investors, the pledging of shares by promoters of the 1,517 NSE-listed companies has risen to a seven-year high at Rs 2.08 lakh crore with companies like TCS and Cairn India leading the way, says a report by PRIME Database.

"Across all NSE listed companies (including companies with no pledging), the percentage of promoter holding pledged went up from 15.57 per cent a year back to 16 per cent on June 30, 2016 (further increased to 16.21 per cent as on August 11, 2016)," Pranav Haldea, Managing Director of PRIME Database, said.

In value terms, promoters' share pledging went up to Rs 1.98 lakh crore as on June 30, 2016 compared to Rs 1.77 lakh crore as on June 30, 2015 (further increased to Rs 2.08 lakh crore as on August 11, 2016), the report said.

According to Haldea, this can be attributed mainly to the rise in share prices.

The high pledge levels, however, are typically not considered a good sign by the investors as a downturn in the market price can lead to invocation and change in management, he said.

Shares were pledged in as many as 522 companies of the 1,517 NSE-listed companies as on August 11, 2016, with Tata Consultancy Services (TCS), Adani Ports, Cairn India, JSW Steel among the top companies by value of pledged shares.

Surprisingly, there were as many as 31 companies in which the complete holding (100 per cent) of the promoters was under pledge as on June 30, 2016, including Bajaj Hindusthan Sugar, Bharati Defence and Infrastructure, IL and FS Investment Managers, Ind-Swift Laboratories, IVRCL, JMT Auto, MSP Steel and Power, Reliance Defence and Engineering and Visa Steel.

Overall, there were 204 companies in which the percentage of promoter holding pledged increased in this period.
 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 24 Jan, 2022
  Daily Poll
COVID-19 has directly affected your business
 Yes
 No
 Can't say
  Commented Stories
» Anchor to roll out electrical devices at Haridwar(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter