Promoters tightened grip with stake hikes in 500 firms during March panic

Expets say they may have seen sharp correction caused by Covid-19 as an opportunity to consolidate holdings and send a signal to the market on their companies' intrinsic value even as stock prices cra

Promoters used the opportunity, provided by the market slump in the March quarter, to increase stake in companies they own. Over a fifth of the close to 2,500 firms analysed showed such a trend.

They may have looked to consolidate holdings in order to send a signal to the market on the entity’s intrinsic value, despite share prices crashing, according to experts.

Business Standard looked at 2,476 firms for which shareholding data was available. A total of 510 saw an increase in promoter stake vis-à-vis the December quarter. This was higher than the trend in previous quarters.