Private promoter holding slumps to 4-yr low

The share of private promoters in companies listed on NSE declined to a 4-year low of 41.55 per cent as on September 30, 2023, according to Primeinfobase, an initiative of Prime Database Group.

Over the last one year alone, it has fallen by 306 basis points from 44.61 per cent on September 30, 2022.

According to Pranav Haldea, Managing Director, Prime Database Group, stake sales by promoters to take advantage of bullish markets, relatively lower promoter holding in companies getting listed and also overall institutionalization of market has resulted in this.

Share of retail investors (individuals with up to Rs 2 lakh shareholding in a company) in companies listed on NSE increased to an all-time high of 7.62 per cent as on September 30, 2023 from 7.50 percent on June 30, 2023.

Retail investors bought a net of Rs 7,596 crore during the quarter.

The share of the government (as promoter) increased as well to a 5-year high of 8.79 per cent as on September 30, 2023.

According to Haldea, to put this in perspective, over a 14-year period, the share of the government has declined considerably, from 22.48 per cent as on June 30, 2009, primarily due to the government’s divestment programme, not enough new listings as also lackluster performance of many CPSEs relative to their private peers.

Domestic Institutional Investors (DII) holding crossed Rs 50 lakh crore and seems set to overtake the Foreign Institutional Investors (FIIs) in the next few quarters.

The gap between FII and DII holding narrowed to an all-time low in this quarter with DII holding now being just 13.11 per cent lower than FII holding.

The widest gap between FII and DII holding was in quarter ending March 31, 2015, when DII holding was 49.82 per cent lower than FII holding.

The FII to DII ownership ratio also decreased to an all-time low of 1.15 as on September 30, 2023 from an all-time high of 1.99 in quarter ending March 31, 2015.

There were 12 companies in which the trinity of promoters, FIIs and DIIs all increased their stake during the quarter these being (in descending order by market capitalisation) Wipro, Aegis Logistics, Bombay Burmah Trading Corp., Maharashtra Seamless, Mrs.Bectors Food Specialities, Man Infraconstruction, Greenpanel Industries, Rallis India, Choice International, Thirumalai Chemicals, Foods & Inns and Snowman Logistics.