Promoter Shareholding In Indian Corporates At Eight-Year Low
Government holdings as promoters saw a slight increase during the quarter, rising from 9.27% to 9.39%.
Promoter shareholdings in Indian corporates have fallen to an eight-year low of 40.58%. This followed a net share sale worth Rs 54,732 crore during the quarter, as per data from Prime Infobase as part of Prime Database Group.
In the last 13 quarters alone, promoters’ share has fallen sharply by 455 basis points to 40.58% as of June 30, 2025 from 45.13% from March 31, 2022.
Private promoters held a 40.81% stake in the quarter ended March 2025. The last time holdings were this low was in the quarter ended September 30, 2017, when private promoter shareholding stood at 40.19%.
Meanwhile, government holdings as promoters saw a slight increase during the quarter, rising from 9.27% to 9.39%.
Promoter selling happens for a number of reasons like debt reduction, legacy planning, philanthropy, investment in other ventures, and meeting minimum public shareholding requirement as also for personal expenses, explained Pranav Haldea, managing director of PRIME Database Group.
Usually, promoters buying stakes is considered a positive sign. However, as long as promoters continue to hold a sizable stake after the sale, with the sale not happening at a huge discount to market price and no significant change in business fundamentals, there is no reason to worry, Haldea said.
This analysis is based on the shareholding data filed by 2,086 out of the 2,131 companies listed on the main board of the NSE for the quarter ended June 30, 2025. As of July 25, 45 companies had yet to submit their shareholding disclosures, PTI reported.
(With PTI inputs)
