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Promoter holdings

In the wake of the Satyam fiasco, investors have begun to be concerned about promoter holdings. We looked at the change in the holdings between 31 Dec 2007 and 31 Dec 2008 of 252 companies from the BSE 500 universe.

Print Edition: February 19, 2009

In the wake of the Satyam fiasco, investors have begun to be concerned about promoter holdings. We looked at the change in the holdings between 31 Dec 2007 and 31 Dec 2008 of 252 companies from the BSE 500 universe.

Set 1
Of the 19 large-cap companies with an average market cap of Rs 72,136 crore, most had insignificant change in promoter holdings with 10 registering no change.

Set 2
Of the 33 mid-cap companies with an average market cap of Rs 9,999 crore, an almost equal number of firms increased and decreased the stakes.

Set 3
Of the 200 companies with an average market cap of Rs 1,330 crore, 40% promoters reduced their stakes, while 33% retained their holdings.

  1. With a 72% decline in promoter stake, India Bulls Securities leads the pack of promoters who have recently reduced stakes in their ventures.
  2. UTV Software has had the maximum increase in stake in its holdings. It has upped it by about 52%.
  3. The Singh family has sold 28% of its holding in Ranbaxy, which has been bought by the Japanese firm, Daiichi Sankyo.
  4. Most of the big players like NTPC, ONGC, ITC and some banks have seen no change in promoter holdings.
  5. Some companies, such as Educomp and Info Edge, have seen a marginal decrease in promoter holdings. These promoters have cashed out to book profits.
  6. The companies that have less than Rs 1,000 crore in market capitalisation have seen more variations in promoter holdings.

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