Q2 pit stop: Promoters switch gears and enter retreat lane, shows data

Navigating second-quarter mile: Pledged holdings take a hairpin turn to 1.22%

The percentage of pledged holdings in relation to promoter holdings decreased to 1.22 per cent by the end of the July–September quarter of 2023–24, down from 1.36 per cent in the April–June quarter of the same financial year.

According to a report by Kotak Institutional Equities, the value of pledged promoter holdings amounted to Rs 1.8 trillion, constituting 0.61 per cent of the total market capitalisation of S&P BSE 500 stocks.
 

At the close of the July–September quarter, promoters in 82 companies had some portion of their holdings pledged, a decrease from 86 companies in June 2023. Among these, only 10 companies had more than 25 per cent of their promoter holdings pledged, a decline from 15 in the preceding quarter.
 

GMR Airports, Max Financial Services, and MedPlus Health Services had the highest pledged promoter holdings as a percentage of overall equity among S&P BSE 500 stocks.
 

Firms experiencing a significant increase in pledged promoter holdings included TTK Prestige, IndusInd Bank, and The Ramco Cements. Conversely, Suzlon Energy, Max Financial Services, Jindal Steel & Power, Sobha, and Emami Group witnessed a reduction in pledged promoter holdings.
 

Notably, for the first time in several quarters, no company had pledged more than 75 per cent of its promoter holdings.

Analysts suggest that some promoters were able to revoke their pledges due to a sharp rally in stock prices.