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

debt, loan, liquidity, market share, corporate, company, companies, firm, india inc, cash, fund, shares, stocks, shareholding, investment, lending

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.

ALSO READ: Covid-19

Don't miss the most important news and views of the day. Get them on our Telegram channel

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

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to