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BSE firms' promoters pledged shares worth Rs 2.78L cr in Nov

Press Trust of India  |  New Delhi 

The value of pledged by the promoters of BSE-listed companies marginally dropped to Rs 2.78 lakh crore at the end of November, according to the exchange data.

The value of stood at Rs 2.81 lakh crore at the end of October. It was at Rs 2.6 lakh crore in September.

Till November this year, pledging of was seen in as many as 3,005 out of 5,148 BSE-listed companies.

Share pledging is typically done by promoters to raise funds either for the same company or for financing other projects.

High pledging levels are typically not considered as a good sign by investors as a downturn in the market price can lead to invocation and change in management. Further, decline in the level of share pledging may indicate scaling down in stress.

According to data, promoters of as many as 448 companies pledged up to 30 per cent of their respective holdings, while 139 firms saw 30-50 per cent of the promoter's holding being pledged in November.

Further, there were some 81 companies in which 50-75 per cent of the promoter's holding was pledged.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, December 04 2017. 17:30 IST