BSE-listed cos promoters pledge shares worth Rs 2.6 lakh cr

The value of shares pledged by promoters of BSE-listed firms stood at Rs 2.6 lakh crore at the end of September quarter, an increase of 3.5 per cent from the preceding three months, the bourse data showed.

In comparison, the figure stood at Rs 2.49 lakh crore at the end of June quarter.

Share pledging is typically done by promoters to raise funds either in the same company or for financing other projects.

High pledging levels are typically not considered a good sign by the investors as a downturn in the market price can lead to invocation and change in management.

Till September this year, pledging of shares was seen in as many as 3,060 of the 5,119 BSE-listed companies. The value of these shares pledged was Rs 2,57,972 crore, the data noted.

At the end of last month, value of shares pledged with non-banking finance companies (NBFCs) was Rs 67,211 crore.

Besides, there were 452 firms in which 5-30 per cent stake of of the promoters was pledged, 143 companies in which 30-50 per cent holding of the promoters was under pledge and as many as 84 in which 50-75 per cent was pledged.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)