Promoter pledging rises 1.7% in Q4FY22 amid increase in market volatility

Share pledging by promoters rose during the January-March quarter (fourth quarter, or Q4) of 2021-22 (FY22) amid increase in market volatility. According to a report by Kotak Institutional Equities, pledged promoter holdings as percentage of promoter holding rose to 1.71 per cent in Q4FY22, from 1.6 per cent in the October-December FY21 quarter.

The value of pledged promoter holdings stood at Rs 2.1 trillion - 0.86 per cent of the total market capitalisation of the BSE 500 Index.

Promoters of 82 companies on the BSE 500 Index had pledged at least some portion of their holdings in the Q4FY22. Only two companies - Suzlon Energy and Max Financial Services - had more than 80 per cent of their promoter holdings pledged.

Sundaram Clayton, Max Financial Services, Strides Pharma Science, Spandana Sphoorty Financial, and PVR were among companies that saw substantial increase in pledged promoter holdings.

Sterling and Wilson, Aurobindo Pharma, Sobha, Lemon Tree Hotels, and Apollo Hospitals saw decline in promoter holdings.

Sundaram Clayton, Spandana Sphoorty Financial, PVR, and UFlex saw fresh pledge creations during the quarter.

Among Nifty 50 companies, those with more than 5 per cent of pledged promoter holdings include Adani Ports and Special Economic Zone (13.4 per cent of promoter holding pledged), Apollo Hospitals (16.4 per cent), Asian Paints (11.1 per cent), IndusInd Bank (45.5 per cent), JSW Steel (15.8 per cent), and Sun Pharmaceutical Industries (5.6 per cent).