Many promoters would be required to pay as much as 43 per cent tax on dividends for dividends declared in the new financial year
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.
First Published: Jul 03 2020 | 8:44 PM IST