BSE-listed company promoters pledge shares worth Rs 2.8 lakh crore
By PTI | Published: 06th November 2017 03:01 PM |
Last Updated: 06th November 2017 03:56 PM | A+A A- |
The Bombay Stock Exchange (BSE) logo is seen at the BSE building in Mumbai. (File | Reuters)
NEW DELHI: The value of shares pledged by promoters of BSE-listed companies reached Rs 2.8 lakh crore at the end of October, an increase of 9 per cent from the preceding month.
The value of pledged shares stood at Rs 2.57 lakh crore at the end of September, according to the BSE data.
Till October this year, pledging of shares was seen in as many as 3,055 of total 5,138 BSE-listed companies. As on September 30, promoters had pledged shares in 3,060 firms.
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 a good sign by investors as a downturn in the market price can lead to invocation and change in management.
Promoters of as many as 461 companies pledged up to 30 per cent of their respective holdings, while 140 firms saw 30 -50 per cent of the promoter's holding being pledged, in October.
Further, there were some 82 companies in which 50-75 per cent of the promoter's holding was pledged.
