Promoter pledging has declined for a fourth straight quarter as elevated market valuations assist India Inc borrow by pledging fewer shares.

On the finish of the January-March quarter (This fall) of 2023-24 (FY24), the pledged shares as a proportion of complete promoter shareholding dipped to 1.1 per cent from 1.17 per cent within the October-December quarter of FY24, in response to an evaluation by Kotak Institutional Equities (KIE).

The worth of pledged promoter holdings stood at Rs 1.96 trillion, about 0.56 per cent of the whole S&P BSE 500 index’s market capitalisation.

The BSE 500 rose 4.3 per cent in Q4FY24, whereas it rallied 32 per cent through the 12 months ended March 2024.

For the reason that April-June quarter (Q1) of 2022-23 (FY23), promoter pledging has constantly declined.

Promoters of 73 corporations within the BSE 500 have pledged a part of their holdings in Q4FY24, down from 86 corporations on the finish of Q1FY23.

None of those corporations had greater than 75 per cent of their holdings pledged.

Amongst BSE 500 shares, Max Monetary Providers, Eris Lifesciences, Ashok Leyland, Jubilant FoodWorks, and Lloyds Metals & Vitality noticed a rise in promoter pledges.

Then again, Kalpataru Initiatives, Bharat Forge, GMR Airports Infrastructure, Lemon Tree Resorts, and Tata Communications noticed a discount.

No firm reported contemporary pledges throughout Q4FY24. Promoters of Bharat Forge, Lemon Tree Resorts, and Tata Communications launched their total pledged holding, in response to the KIE report.

First Printed: Might 09 2024 | 12:14 AM IST

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