Monday, Jul 06, 2020 | Last Update : 11:23 PM IST

104th Day Of Lockdown

Maharashtra2119871152629026 Tamil Nadu114978665711571 Delhi100823720883115 Gujarat36858263231967 Uttar Pradesh2770718761785 Telangana2390212703295 Karnataka234749849372 West Bengal2212614711757 Rajasthan2026315965459 Andhra Pradesh200198920239 Haryana1750413335276 Madhya Pradesh1528411579617 Bihar12140901497 Assam11737743414 Odisha9526648648 Jammu and Kashmir84295255132 Punjab64914494132 Kerala5623334128 Chhatisgarh3207257814 Uttarakhand3161258642 Jharkhand2815204520 Goa181310617 Tripura158012061 Manipur13897330 Himachal Pradesh107074610 Puducherry101148014 Nagaland5782280 Chandigarh4874016 Arunachal Pradesh269781 Mizoram191130 Sikkim125650 Meghalaya80431
  Business   Promoters pledge shares worth Rs 2 lakh crore

Promoters pledge shares worth Rs 2 lakh crore

AGE CORRESPONDENT
Published : Jan 19, 2016, 5:15 am IST
Updated : Jan 19, 2016, 5:15 am IST

The pledging of shares by promoters of NSE-listed companies has hit a seven-year high during the quarter ended December 2015 indicating the high level of financial distress faced by India Inc.

The pledging of shares by promoters of NSE-listed companies has hit a seven-year high during the quarter ended December 2015 indicating the high level of financial distress faced by India Inc.

According to data analys-ed by PRIME Database, share pledging by promoters saw an increase of 14 per cent in the last quarter of calendar year 2015, with the value of pledged shares going up to Rs 2.03 lakh crore as on December 31, 2015 compared to Rs 1.78 lakh crore reported at the end of September 30, 2015.

 

“High pledge levels are typically not considered a good sign by the investors as a downturn in the market price can lead to invocation and change in management,” said Prithvi Haldea, managing director, PRIME.

Surprisingly, there were as many as 25 companies in which the complete holding (100 per cent) of the promoters was under-pledged as at the end of December 2015.

Mr Haldea pointed out that lenders have already invoked pledged shares in as many as 19 companies during the October-December period with Pipavav Defence & Offshore Engin-eering seeing Rs 300 crore worth of pledged shares being invoked by their lenders.

Some of the companies in which 100 per cent of the promoters holdings were pledged include AGC Networks, Ankit Metal & Power, Bajaj Hindusthan Sugar, DQ Entertainment, Eastern Silk Industries, Era Infra Engineering, Gokaldas Exports, IL&FS Investment Managers, Impex Ferro Tech, Ind-Swift Labs, IVRCL, Paramount Communications, Parenteral Drugs (India), Pipavav Defence & Offshore Engineering, PSL, and Raj Rayon Industries.

In all, there were as many as 79 companies in which more than 90 per cent of the promoter’s shareholding was pledged. In another 208 companies, promoters had pledged more than 50 per cent of their ownership. As at the end of 2015, the shares of as many as 517 companies out of 1,506 NSE listed companies, were pledged, up from 370 companies six years ago.