Promoter ownership in India's top 500 companies hits record low of 49.5%

Synopsis

Promoter ownership successful India's apical 500 companies has declined to a grounds debased of 49.5% successful the March quarter, driven by precocious valuations and beardown capitalist request prompting involvement sales. Non-banking finance, telecom, and nationalist assemblage banks experienced the astir important drops successful promoter holdings.

Mumbai: Promoter ownership successful India's apical 500 companies fell to an all-time debased of 49.5% successful the March 4th arsenic affluent stock valuations and beardown capitalist appetite prompted respective founders to merchantability a information of their stakes successful the past year. Non-banking concern companies, telecom, physics manufacturing services (EMS) companies and nationalist assemblage banks saw the biggest diminution successful promoter stakes successful the 4th fourth from the erstwhile one, according to Motilal Oswal Financial Services.

Shareholding of promoters fell by 30 ground points (0.3%) from 49.8% successful the December 4th and by 140 ground points (1.4%) from 50.9% successful the aforesaid play past year.

"The enactment successful the superior marketplace was truthful robust that promoters took vantage of the precocious valuations to merchantability their stakes done QIPs (Qualified Institutional Placements) and different routes," said Deven Mistry, caput - Quant Research - Institutional Equities, Motilal Oswal Financial Services.

Agencies

Promoters person held the highest stakes successful Indian companies successful the past 2 decades, followed by foreigners and home institutions specified arsenic communal funds and insurers. While their holdings successful the apical 500 companies person consistently stayed supra 50% of the full equity, they archetypal fell beneath the halfway people successful July-September 2023.

In 2015, promoters held 52.1% successful the country's apical companies, portion overseas portfolio investors owned 22.8% and home institutions held 10.8%. Circa 2025, home institutions' ownership has changeable up to 19.2%, portion the stakes of promoters and FPIs person dropped to 49.5% and 18.8%, respectively.

Domestic institutions person been increasing successful dominance successful the past 5 years, driven by unprecedented inflows into equity communal funds and pension funds, acknowledgment to retail investors' voracious appetite for stocks. In the March quarter, these funds surpassed overseas portfolio investors successful ownership of companies for the archetypal clip successful much than 22 years.

Promoters of companies successful technology, NBFCs, Oil and Gas, user and automobiles were the astir ascendant successful the Nifty 500 index, accounting for 42% of the full holding successful the March quarter.

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