IndusInd Bank, Chalet Hotels to MedPlus – These stocks have highest promoter pledges. Do you own any?

According to an analysis done by domestic brokerage firm Kotak Institutional Equities, the pledged holdings of BSE-500 stocks declined during the December 2024 quarter. The value of promoter (majority shareholder) pledged holdings, as a percentage of total promoter holdings, fell to 0.84% in the December 2024 quarter from 0.87% in the September 2024 quarter.

The percentage of promoter-pledged holdings was 1.16% in December 2022 and has been on a downtrend since subsequent quarters. It dropped below 1% in the June 2024 quarter and further to 0.87% in the September 2024 quarter.

The analysis revealed that promoters of 69 companies in the BSE-500 index had pledged a portion of their holdings in the December 2024 quarter.

Looking at the individual companies, Medplus Health Services had the highest pledged holding as a percentage of promoter pledged holdings at 55.2%, followed by IndusInd Bank at 50.9%. Chalet Hotels and Ashok Leyland also reported significant pledged holdings at 31.9% and 30.1%, respectively.

GMR Airports and Sterling & Wilson have pledged holdings of 29.5% and 27.6%, while Kalpataru Projects and Chambal Fertilisers stood at 24.6% and 19.5%, respectively. In terms of pledged holdings as a percentage of total shares, Medplus Health Services, Chalet Hotels, and GMR Airports topped the list.

Medplus Health Services saw an increase in pledged holdings (% of total shares) to 22.3% in December 2024, up from 21.9% in September 2024, while Chalet Hotels’ pledged holdings remained steady at 21.5%. GMR Airports’ pledged holdings rose to 19.5%, reflecting a notable increase, as per the report. 

Please note that pledging of shares does not necessarily indicate financial distress for a company or promoter. In some cases, banks and lenders may require additional security in the form of promoter share pledges.

Total pledged holdings at ₹1.63 trillion

As per the report, the total value of pledged promoter holdings stood at ₹1.63 trillion at the end of Q3FY25, accounting for approximately 0.4% of the total market capitalisation of the BSE-500 index.

In terms of the highest value, Hindustan Zinc, GMR Airports, and JSW Steel have the highest pledged promoter holdings in value terms. Hindustan Zinc tops the list with pledged holdings worth ₹172.5 billion, followed by GMR Airports at ₹161.5 billion and JSW Steel at ₹139.1 billion.

Ashok Leyland and Kalyan Jewellers also feature prominently, with pledged values of ₹99.6 billion and ₹96.0 billion, respectively. Other notable names include Lloyds Metals and Jindal Steel & Power, both with pledged values of ₹74.2 billion, while Aurobindo Pharma and JSW Energy have pledged holdings of ₹71.6 billion and ₹73.3 billion, respectively.

Further, the report also highlights companies where pledged promoter holdings increased in the December quarter, including IndusInd Bank, Anand Rathi Wealth, Ashok Leyland, Anupam Rasayan, and Laurus Labs, among others. Conversely, pledged promoter holdings declined in Swan Energy, Krishna Institute of Medical Sciences, Sun Pharma Advanced Research, Aurobindo Pharma, and Chambal Fertilisers.

Moreover, the report noted new promoter pledges in Laurus Labs, while Sun Pharma Advanced Research and UPL were among the companies where promoters released nearly all pledged holdings or sold stakes to repay debts.

Further, the report identified Nifty 50 companies with more than 5% of pledged promoter holdings, including Apollo Hospitals (13.5%), Asian Paints (9.2%), IndusInd Bank (50.9%), and JSW Steel (14.1%).

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.