Kotak Institutional Equities - Strategy: Pledged shareholding report, March 2024 quarter
Pledged holding analysis, March 2024 quarter. Our analysis of the pledged holdings of BSE-500 stocks shows that the value of the promoter (majority shareholder) pledged holding as a percentage of the promoter holding has come down marginally to 1.10% in the March 2024 quarter from 1.17% in the December 2023 quarter. Promoters of 73 companies in the BSE-500 Index have pledged part of their holdings in the March 2024 quarter. The value of pledged promoter holdings stood at Rs1.96 tn (about 0.56% of the total BSE-500 Index’s market capitalization). We clarify that the pledging of shares does not necessarily imply that a company or a promoter is under financial stress; banks (lenders) could have sought additional security in the form of promoter shares.
Highlights of the March 2024 quarter pledged holding disclosures
* Companies whose promoters pledged more than 75% of their holdings: None.
* Companies in which pledged promoter holding increased: Max Financial Services, Eris Lifescience, Ashok Leyland, Jubilant Foodworks and Lloyd Metals, among others.
* Companies in which pledged promoter holdings declined: Kalpataru Projects, Bharat Forge, GMR Airports, Lemon Tree, Tata Communications, among others.
* Fresh promoter pledges: None.
* Companies in which promoters released almost entire pledged holdings: Bharat Forge, Lemon Tree Hotels and Tata Communications.
* Companies in the Nifty-50 with more than 5% of pledged promoter holdings: Apollo Hospitals (16.1%), Asian Paints (7%), IndusInd Bank (45.5%) and JSW Steel (15.2%).
* The report compares changes in pledged holdings between December 2023 and March 2024 quarters. Changes in pledged holdings after March 2024 have not been incorporated in this report. We have prepared this report based on the latest BSE-500 constituents.
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