Promoter Pledges Shares

Pledging of shares by promoters is a common thing in India and has been done for a number of years now. This is a simple practice where the promoters of a company raise a loan from a bank by pledging their equity stake in the company. The loan can then be used for either personal purposes or for the business itself.

While this is not a bad practice in itself, there is one situation where pledging of shares becomes dangerous for the company.

This is where the company is managed by the promoters and the stock market falls rapidly. In such a case, the bank will ask the promoters to shore up their collateral (pledged shares) with more cash or more shares. If the promoter is not able to shore up his collateral — the bank will sell off the pledged shares and the promoters will lose control of the management of the company.

This will cause uncertainty in the markets and the stock price will surely take a big hit.

This practice is legal in India and US, but, while in US the promoters are required to disclose their pledged shares, in India it is not so.

In the recent past SEBI has asked all Indian companies to disclose the amount of pledged shares by their promoters.

Here is a list of the companies that has responded to SEBI and disclosed the information. This list of companies shows the percentage of shares that have been pledged by the promoters as at Feb 2009.

S. No. Name Pledged Shares
1 Koutons ‘26.38%
2 Videocon Industries ‘36.40%
3 Mcleod Russel ‘18.47%
4 Max India ‘24.81%
5 Williamson Magor ‘13.56%
6 EIH ‘3.64%
7 Parsvnath Developers ‘63.88%
8 Navin Fluorine ‘5.83%
9 Entegra ‘26.89%
10 Dagger Forst Tools ‘14.28%
11 Aurobindo Pharma ‘38.97%
12 Ontrack Systems ‘6.20%
13 Golden Tobacco ‘3.00%
14 Birla Precision Tech ‘34.19%
15 Futura Polyesters ‘12.40%
16 JSW Steel ‘31.87%
17 Suzlon Energy ‘25.85%
18 CCL Products ‘1.87%
19 Dharamsi Morarji Chem. ‘38.00%
20 Mirc Electronics ‘36.82%
21 Provogue India ‘12.98%
22 Lokesh Machines ‘31.59%
23 Elecon Engineering ‘14.27%
24 Electrotherm India ‘2.62%
25 Media Video ‘22.98%
26 Indian Metals ‘3.90%
27 BGIL Films ‘16.35%
28 Reliance Capital ‘4.03%
29 Nirlon ‘9.51%
30 Mukand ‘26.67%
31 Kilburn Engineering ‘22.23%
32 Jindal Worldwide ‘15.44%
33 Zensar Technologies ‘21.55%
34 Regency Ceramics ‘26.03%
35 Maxwell Industries ‘0.40%
36 Gammon India ‘10.85%
37 Polar Industries ‘14.78%
38 JHS Svendgaard ‘60.00%
39 Rainbow Denim ‘9.51%
40 Nova Petrochemicals ‘15.00%
41 Essel Propack ‘31.16%
42 Tulip Telecom ‘22.57%
43 Grabal Alok Impex ‘25.23%
44 HFCL Infotel ‘39.39%
45 Indage Vintners ‘27.16%
46 Sakthi Sugars ‘35.12%
47 Refex Refrigerants ‘26.60%
48 Prajay Engineers ‘11.66%
49 Ruchi Soya ‘0.29%
50 McNally Bharat ‘2.89%
51 Tuticorin Alkali ‘45.15%
52 Vardhman Polytex ‘1.46%
53 ICSA India ‘1.55%
54 ‘0.16%
55 Usher Agro ‘5.04%
56 Akruti City ‘13.34%
57 Motilal Oswal Fin ‘12.38%
58 Pitti Laminations ‘25.91%
59 Lloyds Metals ‘32.94%
60 IMP Powers ‘29.86%
61 Todays Writing Products ‘41.46%
62 S.Kumars Nationwide ‘36.21%
63 Polar Pharma ‘29.57%
64 Blue Coast Hotels ‘19.81%
65 Nikhil Adhesives ‘14.71%
66 Star Paper Mills ‘46.54%
67 Medicamen Biotech ‘24.11%
68 Temptation Foods ‘34.11%
69 LN Polyesters ‘22.80%
70 Winsome Yarns ‘19.48%
71 Rama Phosphates ‘31.86%
72 Rama Petrochemicals ‘12.98%
73 Neuland Labs. ‘1.85%
74 0 ‘1.25%
75 Gayatri Projects ‘53.73%
76 Mundra Port ‘4.51%
77 Emmsons International ‘30.83%
78 Pantaloon Retail ‘19.49%
79 Prithvi Information ‘24.84%
80 Gati ‘14.34%
81 Spentex Industries ‘44.52%
82 Raunaq Automotive ‘18.91%
83 Quintegra Solutions ‘19.42%
84 Jyoti ‘19.37%
85 Manali Petrochemical ‘38.29%
86 Expo Gas Containers ‘21.21%
87 Lloyds Steel Inds. ‘13.13%
88 Era Infra Eng. ‘56.60%
89 Omaxe ‘21.95%
90 Jaiprakash Associates ‘2.15%
91 Forbes & Company ‘0.37%
92 BPL Ltd. ‘34.21%
93 Anjani Portland Cement ‘35.98%
94 Ansal Properties ‘12.60%
95 ‘16.07%
96 ‘0.44%
97 United Phosphorus ‘5.52%
98 Kpit Cummins ‘0.38%
99 Ipca Laboratories ‘16.41%
100 Accentia Technologies ‘10.00%
101 ISMT ‘4.03%
102 Cambridge Technology ‘3.13%
103 Four Soft ‘5.52%
104 Zandu Pharmaceutical ‘50.76%
105 Hotel Leelaventure ‘20.87%
106 Mangalam Drugs ‘3.98%
107 PI Industries ‘6.37%
108 Rajapalayam Mills ‘10.59%
109 Kerala Ayurveda ‘61.52%
110 Supreme Industries ‘9.72%
111 Amit Spinning ‘20.00%
112 KLG Systel ‘3.18%
113 Euro Ceramics ‘43.68%
114 Vamshi Rubber ‘6.59%
115 Lupin ‘12.60%
116 Raymond ‘8.31%
117 Schrader Duncan ‘12.58%
118 Tamilnadu Petro. ‘16.93%
119 Taneja Aerospace ‘3.81%
120 Usha Martin ‘11.82%
121 Thiru Arooran Sugars ‘11.97%
122 Khaitan Chemicals ‘1.03%
123 Damodar Threads ‘8.22%
124 Hathway Bhawani Cable ‘51.00%
125 Riga Sugar Company ‘18.36%
126 Tata Consultancy Serv. ‘11.14%
127 Madras Cements ‘2.11%
128 Uttam Galva Steels ‘32.19%
129 Integra Capital Manag. ‘13.34%
130 Ramco Systems ‘0.85%
131 Ramsarup Industries ‘5.70%
132 Ritesh Properties ‘10.92%
133 Alps Industries ‘10.14%
134 Genus Power Infra. ‘23.72%
135 Amforge Industries ‘2.37%
136 ‘13.23%
137 Granules India ‘10.43%
138 Onward Technologies ‘9.83%
139 Super Forgings ‘24.92%
140 Nijjer Agro Foods ‘10.39%
141 Phoenix Mills ‘0.35%
142 Adani Enterprises ‘24.98%
143 Dish TV India ‘7.17%
144 Bajaj Electricals ‘1.45%
145 Paramount Comm ‘3.20%
146 Indage Restaurants ‘8.12%
147 Goldstone Infratech ‘1.39%
148 Punj Lloyd ‘1.20%
149 Transformers & Rectif. ‘16.33%
150 Modison Metals ‘1.90%
151 Ruchi Infrastructure ‘2.46%
152 Dr Agarwals Eye ‘30.00%
153 ASM Technologies ‘17.00%
154 Cupid ‘12.72%
155 Ballarpur Industries ‘3.38%
156 Balaji Amines ‘19.85%
157 Suryalata Spinning ‘41.95%
158 Setco Automotive ‘5.48%
159 Dishman Pharmaceuticals ‘6.44%
160 Refnol Resins & Chem. ‘52.57%
161 Digjam ‘5.24%
162 Premier Explosives ‘10.57%
163 Emami ‘27.89%
164 Falcon Tyres ‘68.00%
165 Pyramid Saimira ‘21.72%
166 Alok Industries ‘21.06%
167 Sobha Developers ‘28.39%
168 Supreme Holdings ‘39.29%
169 Bihar Tubes ‘11.09%
170 Dharani Sugars & Chem. ‘24.79%
171 MSK Projects India ‘5.33%
172 Oxford Industries ‘5.98%
173 Simplex Infra ‘7.60%
174 Pennar Industries ‘1.98%
175 Jindal Steel & Power ‘1.65%
176 Orient Press ‘9.50%
177 Tata Chemicals ‘20.02%
178 Plethico Pharma ‘46.97%
179 Gallantt Metal ‘18.64%
180 Facor Alloys ‘6.20%
181 Chowgule Steamships ‘7.99%
182 Balasore Alloys ‘22.72%
183 Ispat Industries ‘29.98%
184 Tata Tea ‘11.32%
185 Camlin Fine Chemicals ‘1.03%
186 Wire & Wireless ‘16.84%
187 Priyadarshini Spinning ‘0.42%
188 Shoppers Stop ‘33.10%
189 Jasch Industries ‘17.65%
190 Jai Balaji Industries ‘2.96%
191 ETC Networks ‘20.33%
192 Raj Rayon ‘11.75%
193 Ashapura Minechem ‘6.20%
194 Gemini Communication ‘10.29%
195 0 ‘0.99%
196 Asian Electronics ‘0.40%
197 Uttam Sugar Mills ‘23.28%
198 Aksh Optifibre ‘1.69%
199 Visaka Industries ‘11.24%
200 Jindal Saw ‘7.32%
201 Satra Properties India ‘73.54%
202 Sun Pharmaceutical ‘0.42%
203 Tata Communications ‘10.53%
204 Nicco Corpporation ‘6.52%
205 Sintex Industries ‘14.90%
206 Camlin Ltd. ‘1.00%
207 Tata Power ‘14.59%
208 Tulip Star Hotels ‘30.42%
209 Bhushan Steel ‘28.30%
210 Mold Tek Technologies ‘7.60%
211 Sri Ramakrishna Mills ‘54.11%
212 Zee News ‘17.17%
213 Godawari Power ‘4.92%
214 Gem Spinners ‘54.03%
215 Nagarjuna Construction ‘9.20%
216 Brushman India ‘35.07%
217 Bombay Rayon ‘18.43%
218 Aurionpro Solutions ‘16.85%
219 Zee Entertainment ‘11.53%
220 Shreyas Intermediates ‘10.69%
221 Bihar Sponge Iron ‘36.06%
222 Dabur India ‘9.24%
223 LGS Global ‘14.49%
224 Arvind Products ‘50.12%
225 Sky Industries ‘16.68%
226 Alcobex Metals ‘21.88%
227 Kreb Biochemicals ‘14.53%
228 IG Petrochemicals ‘13.11%
229 Rolta ‘2.58%
230 Wockhardt ‘43.11%
231 Tata Motors ‘8.15%
232 Nagarjuna Fertilizers ‘24.56%
233 Dhanus Technologies ‘34.39%
234 Vishal Retail ‘3.51%
235 Saurashtra Cement ‘15.63%
236 Premier Ltd. ‘7.24%
237 Natco Pharma ‘3.74%
238 Strides Arcolab ‘16.83%
239 Khaitan Electricals ‘1.84%
240 Marsons ‘2.57%
241 Hikal ‘4.72%
242 Kalpataru Power Trans. ‘20.92%
243 Arvind Ltd ‘18.18%
244 Glory Polyfilms ‘25.27%
245 Peninsula Land ‘14.36%
246 JD Orgochem ‘30.40%
247 Indokem ‘29.09%
248 Crompton Greaves ‘6.22%
249 Shree Bhawani Paper ‘1.73%
250 Wanbury ‘13.71%
251 Excel Glasses ‘25.62%
252 Century Textiles & Ind. ‘0.21%
253 Vikash Metal & Power ‘14.54%
254 Bajaj Finserv ‘4.41%
255 Lyka Labs ‘11.82%
256 Bajaj Holdings & Inv. ‘3.82%
257 Financial Eyes India ‘53.33%
258 Shrenuj & Company ‘19.47%
259 Ahluwalia Contracts ‘18.76%
260 DCM Shriram Inds. ‘9.53%
261 Mascon Global ‘2.73%
262 Bajaj Auto ‘2.57%
263 GEI Industrial Sys. ‘36.78%
264 Ashima ‘3.00%
265 IOL Netcom ‘1.72%
266 India Cements Capital ‘85.58%
267 Fortis Healthcare ‘20.75%
268 Tata Coffee ‘57.48%
269 Hatsun Agro Product ‘45.46%
270 Sudal Industries ‘34.91%
271 Oriental Carbon & Chem. ‘2.87%
272 Panoramic Universal ‘3.61%
273 KEI Industries ‘4.59%
274 Shree Ram Mills ‘33.00%
275 Comfort Intech ‘0.19%
276 Reliance Chemotex Inds. ‘16.91%
277 Escorts Finance ‘14.91%
278 Sarda Energy & Minrls. ‘1.47%
279 DCW ‘0.16%
280 South Asian Petrochem ‘22.75%
281 Vipul ‘15.48%
282 Indian Hotels Company ‘3.46%
283 Richa Industries ‘14.53%
284 Nachmo Knitex ‘7.88%
285 Ahlcon Parenterals ‘19.44%
286 Accel Transmatic ‘2.27%
287 ‘4.98%
288 India Cements Ltd ‘22.43%
289 Raasi Refractories ‘5.18%
290 ‘17.12%
291 ‘21.22%
292 Jaiprakash Hydro Power ‘60.08%
293 ‘7.44%
294 Clutch Auto ‘22.75%
295 HCL Infosystems ‘0.77%
296 Sree Rayalaseema Alkl. ‘0.44%
297 Tata Steel ‘13.53%
298 Tata Teleservices Maha. ‘49.70%
299 APW President Systems ‘29.17%
300 Sona Koyo Steering ‘25.12%
301 Nakoda Textile Inds. ‘1.18%
302 Uflex ‘2.28%
303 Heritage Foods India ‘17.35%
304 Religare Enterprises ‘0.58%
305 Steel Strips Wheels ‘33.50%
306 Sankhya Infotech ‘12.43%
307 Kirloskar Electric Co. ‘48.48%
308 Photoquip India ‘26.21%
309 Elpro International ‘4.05%
310 CESC ‘5.74%
311 Innocorp ‘18.98%
312 Maytas Infra ‘15.14%
313 Ansal Housing & Const. ‘29.70%
314 Kemrock Inds. & Exports ‘11.89%
315 Jain Irrigation Systems ‘5.13%
316 Arvind International ‘11.22%
317 Rajratan Global Wire ‘20.13%
318 Walchandnagar Inds. ‘5.25%
319 STL Global ‘21.85%
320 Kopran ‘1.64%
321 Eimco Elecon India ‘8.67%
322 Birla Ericsson Optical ‘4.17%
323 Kotak Mahindra Bank ‘0.01%
324 Cranes Software Int. ‘27.00%
325 Atlanta ‘2.05%
326 Gujarat NRE Coke ‘15.96%
327 Kirloskar Oil Engines ‘4.55%
328 JIK Industries ‘0.13%
329 Wintac ‘14.29%
330 Software Technology Grp. 02/09/09 ‘18.59%
331 PVP Ventures ‘3.00%
332 ‘0.22%
333 Kamat Hotels India ‘47.09%
334 India Infoline Ltd. ‘0.05%
335 Great Eastern Shipping ‘0.01%
336 Shasun Chemicals ‘3.23%
337 Geodesic ‘0.82%
338 Dr Reddys Laboratories ‘6.19%
339 Pioneer Embroideries ‘16.75%
340 Suryachakra Power Corp. ‘14.91%
341 Rain Commodities ‘24.90%
342 Everonn Systems India ‘3.81%
343 HEG ‘9.47%
344 Apollo Tyres ‘10.62%
345 Sanghvi Movers ‘2.95%
346 Kajaria Ceramics ‘2.04%
347 Prime Focus ‘14.93%
348 Spanco ‘9.69%
349 Sutlej Textiles & Inds. ‘16.10%
350 Kale Consultants ‘3.67%
351 ‘10.15%
352 Arshiya International ‘12.55%
353 Subex ‘7.20%
354 Shetron ‘18.49%
355 ‘1.11%
356 ‘9.05%
357 ‘6.06%
358 Oricon Enterprises ‘36.93%
359 Jubilant Organosys ‘13.66%
360 Bartronics India ‘9.17%
361 Resurgere Mines ‘3.50%
362 ‘3.50%
363 ‘5.26%
364 JK Cement ‘45.58%
365 Filatex India ‘2.91%
366 SRF ‘32.83%
367 Andhra Pradesh Paper M. ‘3.77%
368 GVK Power & Infra. ‘4.37%
369 OCL India ‘0.09%
370 CCAP ‘24.48%
371 Amrit Banaspati ‘16.28%
372 Silktex ‘6.56%
373 Network 18 Media & I. ‘1.68%
374 ‘13.52%
375 Television Eighteen ‘0.06%
376 ‘1.46%
377 Gillette India ‘0.49%
378 Vanasthali Textile I. ‘21.96%
379 ‘11.91%
380 Chambal Fert. & Chem. ‘7.72%
381 Rajvir Industries ‘3.07%
382 ‘6.59%
383 ‘3.29%
384 Zicom Electronic S S ‘13.54%
385 Alchemist ‘12.07%
386 Godawari Power & Ispat ‘12.04%
387 Karuturi Global ‘18.77%
388 Sujana Metal Products ‘6.79%
389 Sujana Towers ‘3.12%
390 Zylog Systems ‘4.86%
391 J Kumar Infraprojects ‘9.76%
392 Ganesh Benzoplast ‘21.45%
393 Panchmahal Steel ‘29.00%
394 Time Technoplast ‘28.18%
395 Hindustan Motors ‘16.30%
396 Sahara One Media & Ent. ‘6.97%
397 Gangotri Iron & Steel ‘4.15%
398 Jindal Drilling & Ind. ‘26.86%
399 Astra Microwave Prod ‘0.24%
400 Emco ‘2.36%
401 Lanco Infratech ‘8.53%
402 Solix Technologies ‘28.11%
403 Haldyn Glass Gujarat ‘40.16%
404 UTV Software ‘22.76%
405 LG Balakrishnan & Bros ‘4.28%
406 LGB Forge ‘3.36%
407 Kavveri Telecom ‘5.09%
408 Kitply ‘35.19%
409 Suryajyoti Spng. Mills ‘3.24%
410 ‘3.24%
411 CHD Developers ‘8.25%
412 Torrent Power ‘20.97%
413 Upper Ganges Sugar1 ‘5.69%
414 Upper Ganges Sugar2 ‘2.25%
415 Upper Ganges Sugar3 ‘2.03%
416 Great Offshore ‘14.88%
417 Shyam Telecom ‘19.52%
418 Fluidomat ‘14.83%
419 Astra Microwave Prod. ‘0.56%
420 Shree Ashtavinayaka CV ‘9.71%
421 JB Chemicals ‘0.04%
422 Murudeshwar Ceramics ‘13.02%
423 ‘4.71%
424 ‘2.35%
425 Micro Inks ‘70.50%
426 Balaji Telefilms ‘6.59%
427 Khandwala Securities ‘14.52%
428 Hind Syntex ‘5.33%
429 Bhuwalka Steel ‘30.00%
430 Kriti Industries ‘19.95%
431 Radaan Mediaworks ‘23.08%
432 Aban Offshore ‘8.14%
433 Shree Renuka Sugars ‘8.45%
434 Pasupati Acrylon ‘21.26%
435 Ganesh Housing Corp. ‘30.00%
436 PVR ‘2.17%
437 Bilpower ‘11.05%
438 Zuari Industries ‘2.65%
439 ‘2.55%
440 ‘1.70%
441 Crest Animation Studios ‘0.89%
442 C&C Construction ‘12.60%
443 B.L. Kashyap & Sons ‘6.40%
444 Nava Bharat Ventures ‘6.44%
445 HBL Power Systems ‘0.78%
446 Dolphin Offshore Ent. ‘22.34%
447 ‘7.68%
448 Asian Paints ‘14.98%
449 MindTree ‘0.07%
450 ‘0.20%
451 SSPDL ‘20.00%
452 Gammon India Ltd. ‘6.86%

Source: MoneyControl

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3 thoughts on “Promoter Pledges Shares”

  1. Will you be able to provide us with the new 2012 list ? If you can, that would be so nice of you !

    Cheers
    Karthik

    Reply
  2. Pingback: Promoter Pledges Shares | Trends Now

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