BSE-Listed Companies’ Promoters Pledge Shares Worth Rs 2.64 Lakh Crore

The value of shares pledged by promoters of BSE-listed companies in the country rose by 6 percent to over Rs 2.64 lakh crore at the end of July.

In comparison, the figure stood at Rs 2.5 lakh crore at June-end.

Till July this year, pledging of shares was seen in as many as 3,072 of the 5,291 BSE-listed companies, according to data compiled by the exchange.

Share pledging is typically done by promoters to raise funds either in the same company or for financing other projects.

High pledging 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.

At the end of last month, value of shares pledged with non-banking finance companies (NBFCs) was Rs 62,835 crore.

Besides, there were 146 companies in which 30-50 percent holding of the promoters was under-pledged and as many as 84 companies in which 50-75 percent was pledged.

This is part of the BSEs disclosure on the total number of listed companies, their market capitalisation, details about promoters pledge holding and their value every month within five working days of the subsequent month.

The move is aimed at providing additional actionable information to the market, the BSE said in a statement.