Data for Thought
The pledge tracker
Here's a list of companies in which promoter pledging has shown a marked rise or fall between December 2017 and March 2018
05-Jul-2018 •Research Desk
Promoter pledging is an important analytical parameter. When promoters pledge shares, they keep shares as collateral with a financial institution, such as a bank, to raise money. It's just like mortgaging something for money. Later you pay the loan back and get your thing released.
Pledging is not always bad. Many times promoters pledge their stake for sound business reasons and later release their pledged shares. But pledging takes an ugly turn when the pledged stake is high and the promoter is unable to pay back the dues. This may force the financing institution to sell the pledged stake, which can result in a sudden fall in the stock price.
Generally speaking, a high pledged stake also indicates a bad management. Investors should stay away from companies that have high levels of pledging.
The first table below mentions companies in which pledging has gone up by 10 per cent or more in the last quarter and the pledged stake is now at least 25 per cent. The second table mentions companies in which pledging has gone down by at least 10 per cent.
Increase in pledging
| Company Name | Industry | M-Cap (Rs cr) |
Pledged stake Mar-18 | Pledged stake Dec-17 | Increase in pledging (%) | Promoter stake (%) |
| Lanco Infratech | Engineering - Construction | 249 | 94.51 | 0 | 94.51 | 58.51 |
| Andhra Cements | Cement & Construction Materials | 263 | 75 | 7.5 | 67.5 | 68.79 |
| Ramky Infrastructure | Engineering - Construction | 1,027 | 89.16 | 46.16 | 43 | 67.76 |
| Riddhi Siddhi Gluco Biols | Trading | 431 | 40.05 | 0 | 40.05 | 74.82 |
| Him Teknoforge | Auto Ancillary | 149 | 36.11 | 0 | 36.11 | 54.83 |
| Tilaknagar Industries | Breweries & Distilleries | 200 | 91.22 | 62.05 | 29.17 | 54.96 |
| Rubfila International | Rubber Products | 293 | 28.52 | 0 | 28.52 | 62.13 |
| Bharat Wire Ropes | Metal - Non Ferrous | 438 | 27.65 | 0 | 27.65 | 40.23 |
| Prakash Industries | Steel & Iron Products | 2,276 | 77.08 | 52.96 | 24.12 | 39.66 |
| Elecon Engineering Company | Engineering - Industrial Equipments | 636 | 60.95 | 37.01 | 23.94 | 58.64 |
| CMI | Cable | 342 | 23.3 | 0 | 23.3 | 43.55 |
| Kwality | Consumer Food | 524 | 79.01 | 61.91 | 17.1 | 54.76 |
| Prabhat Dairy | Consumer Food | 1,239 | 46.06 | 29.71 | 16.35 | 50.1 |
| Kamat Hotels (India) | Hotel, Resort & Restaurants | 164 | 92.42 | 77.19 | 15.23 | 60.9 |
| Zee Learn | Educational Institutions | 1,140 | 82.93 | 67.91 | 15.02 | 57.55 |
| Gopala Polyplast | Plastic Products | 105 | 43.51 | 28.95 | 14.56 | 36.7 |
| Zee Media Corporation | TV Broadcasting & Software Production | 1,189 | 51.02 | 38.05 | 12.97 | 69.11 |
| Bhushan Steel | Steel & Iron Products | 3,051 | 83.6 | 71.13 | 12.47 | 43.9 |
| Centrum Capital | Finance - Investment | 2,286 | 48.4 | 36.19 | 12.21 | 37.08 |
| Emami | Household & Personal Products | 23,655 | 39.87 | 29.07 | 10.8 | 72.74 |
| SPML Infra | Engineering - Construction | 346 | 89.8 | 79.2 | 10.6 | 38.2 |
| Granules India | Pharmaceuticals & Drugs | 2,035 | 41.73 | 31.55 | 10.18 | 44.94 |
Decrease in pledging
| Company Name | Industry | M-Cap | Pledged stake Mar-18 | Pledged stake Dec-17 | Decrease in pledging | Promoter stake |
| MT Educare | Educational Institutions | 380 | 0 | 64.57 | -64.57 | 23.73 |
| MSP Steel & Power | Steel & Iron Products | 51 | 39.49 | 99.09 | -59.6 | 41.62 |
| Bhansali Engineering Polymers | Chemicals | 2,333 | 0 | 55.1 | -55.1 | 55 |
| Uniply Industries | Wood & Wood Products | 1,092 | 38.42 | 83.86 | -45.44 | 33.42 |
| Scanpoint Geomatics | Photographic Products | 114 | 41.13 | 75.92 | -34.79 | 33.71 |
| Mangalam Drugs & Organics | Pharmaceuticals & Drugs | 151 | 11.65 | 42.78 | -31.13 | 50.76 |
| Rajapalayam Mills | Textile - Spinning | 687 | 0 | 28.05 | -28.05 | 53.17 |
| Nath Bio-Genes (India) | Agriculture | 834 | 58.6 | 83.7 | -25.1 | 40.69 |
| Mangalore Chemicals & Fertilizers | Fertilizers | 680 | 29.58 | 53.48 | -23.9 | 75 |
| Shree Renuka Sugars | Sugar | 2,452 | 24.71 | 47.84 | -23.13 | 52 |
| Shivalik Rasayan | Pesticides & Agrochemicals | 331 | 0 | 19.16 | -19.16 | 61.67 |
| Aban Offshore | Oil Exploration | 679 | 4.47 | 21.6 | -17.13 | 46 |
| Rajratan Global Wire | Steel & Iron Products | 256 | 0 | 16.41 | -16.41 | 63.5 |
| Setco Automotive | Auto Ancillary | 558 | 38.68 | 54.66 | -15.98 | 63.54 |
| Man Industries (India) | Castings/Forgings | 636 | 26.74 | 41.49 | -14.75 | 44.16 |
| Jubilant Life Sciences | Chemicals | 11,098 | 5.47 | 19.21 | -13.74 | 50.68 |
| Surya Roshni | Diversified | 1,655 | 23.83 | 35.68 | -11.85 | 62.9 |
| Jindal Worldwide | Textile | 2,163 | 22.64 | 34.11 | -11.47 | 61.15 |
| Sunil Hitech Engineers | Engineering - Construction | 141 | 24.8 | 35.43 | -10.63 | 39.87 |
| Mcnally Bharat Engineering Company | Engineering - Construction | 571 | 12.43 | 22.77 | -10.34 | 44.8 |
| Market cap data as on July 3, 2018. | ||||||
