Kotak Equities, which analysed the pledged holdings of BSE-500 stocks, found that the promoters of 69 BSE 500 companies have pledged a part of their shareholdings as of December 31, 2024, ended quarter.
There were ten stocks where the promoter pledge fell. The sharpest fall of 3.9% was seen in Swan Energy and it was followed by Krishna Institute of Medical Sciences (KIMS), Sun Pharma Advanced Research, Aurobindo Pharma, and Chambal Fertilizers & Chemicals. The decrease was between 3.2% and 2.5%. Other stocks where pledged promoter holding saw a decline are Hindustan Zinc (1.9%), Ramco Cements (1.5%), UPL (0.9%), Asahi India Glass (0.5%) and Apollo Hospitals (0.5%).
The value of pledged promoter holdings stood at Rs 1.63 trillion which is about 0.4% of the total BSE-500 Index’s market capitalisation. The Kotak note also revealed that the value of the promoter (majority shareholder) pledged holding as a percentage of the promoter holding declined to 0.84% in the December 2024 quarter from 0.87% in the September ended quarter.
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The report compares changes in pledged holdings between the September 2024 and December 2024 quarters. Changes in pledged holdings after December 2024 have not been incorporated in this report.The pledging of shares does not necessarily imply that a company or a promoter is under financial stress and could simply mean that the banks (lenders) may have sought additional security in the form of promoter shares.Laurus Labs saw fresh promoter pledges while the companies in which promoters released almost entire pledged holdings/sold stakes to repay debts included Sun Pharma Advanced Research and UPL.
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