Promoter share pledging declines for second straight quarter in Q1FY22

The value of promoter pledged holdings stood at Rs 1.7 trillion, 0.81% of total market cap of BSE 500 index

Share pledging by promoters fell for a second straight quarter amid buoyancy in the market. According to a report by Kotak Institutional Equities (KIE), pledged promoter holdings as a percentage of total promoter holding declined to 1.61 per cent in June 2021 quarter, from 1.64 per cent in the March 2021 quarter.

The value of promoter pledged holdings stood at Rs 1.7 trillion, 0.81 per cent of the total market capitalisation of the BSE 500 index.

Around 78 companies in the BSE 500 index had pledged part of their holdings at the end of the June 2021 quarter, down from 85 in the preceding quarter. The number of companies with at least 75 per cent promoter holding pledged fell to 6 from 9 in the preceding quarter.

Johnson Controls, Wockhardt, IndusInd Bank, SH Kelkar and GMR Infrastructure are some companies which saw an increase in share pledging. On the other hand, Crompton Greaves Consumers, Max Financial Services, Dish TV, Edelweiss Financial Services and Gateway Distriparks saw a decline in pledged promoter holdings.

Nifty 50 companies with at least 5 per cent pledged promoter holdings include Adani Ports & SEZ (14.4 per cent promoter holding pledged), Asian Paints (9%), IndusInd Bank (45.5%), JSW Steel (14.8%) and Sun Pharmaceuticals (6.4%).

During the quarter ended June 2021, the benchmark Nifty rose 7 per cent, while the Nifty Midcap 100 and Nifty Smallcap 100 rose 13.8 per cent and 20 per cent respectively.