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

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Many promoters would be required to pay as much as 43 per cent tax on dividends for dividends declared in the new financial year

Sachin P Mampatta Mumbai
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.

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First Published: Jul 03 2020 | 8:44 PM IST

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