Value of shares pledged by promoters rises 15 percent in July
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The value of shares pledged by promoters of BSE-listed companies rose nearly 14.60 percent to Rs 2.45 lakh crore at the end of July, according to the exchange data.
The worth of promoters' pledge holding stood at Rs 2.14 lakh crore as on June 30 this year.
Promoters usually raise funds against the shares pledged for the same company or to finance other projects.
According to the BSE data, promoters of 400 firms pledged up to 30 percent of their holdings worth Rs 1.29 lakh crore.
Besides, while 135 firms had 30-50 percent of the promoters' holding worth Rs 44,409 crore being pledged, 78 companies saw pledging of their stake in the range of 50-70 percent, valued at Rs 29,853 crore. Promoters of three companies pledged 75-90 percent of their holdings of Rs 85 crore.
High pledging levels are not considered a good sign by investors as a downturn in the market price can lead to the invocation of shares and change of management.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)