Promoter holding is often seen as a sign of confidence in a company’s future. So when promoters start reducing their stakes, it raises a big question: is something wrong, or is it just a normal business decision?
Over the last four years, some well-known companies have seen promoters cut their shareholding by over 20%. In this article, we look at five such stocks, why promoters might be exiting, and what it means for you as an investor.
1. IRB Infrastructure
Promoter stake cut by 28.2% — from 58.6% (Mar 2021) to 30.4% (Mar 2025)
IRB Infrastructure Developers Ltd is one of India’s largest private road and highway developers, managing over 15,444 lane km across 12 states. It operates BOT, TOT, and HAM projects, with around 10% share in national toll revenue and 33% share in TOT projects awarded.
The company has a robust order book of Rs 30,500 crore as of March 2025, with Rs 2,400 crore in EPC and Rs 28,100 crore in O&M contracts, providing high visibility on future revenue.
Promoters have reduced their holding significantly, making way for global infrastructure investors like Cintra (Ferrovial Group) with a 19.9% stake, and GIC’s Bricklayers Investment holding 16.9%. This shift highlights growing institutional confidence in IRB’s long-term growth and execution capabilities.
With a market capitalization of Rs 29,676 Crores, the company posted a revenue of Rs 7,613 Crores in FY25 up by 2.8% from Rs 7,409 in FY24. Coming to its profitability, the company reported a net profit rise of 969% to Rs 6,481 Crores in FY25 from Rs 606 crore In FY24. The company maintained a Return on Capital Employed (ROCE) of 7.82% and a Return on Equity (ROE) of 5.95%. The stock delivered 183% return in the last four years.
2. Whirlpool of India
Promoter stake cut by 24.0% — from 75.0% (Mar 2021) to 51.0% (Mar 2025)
Whirlpool of India Ltd, a subsidiary of Whirlpool Corporation, is one of India’s leading home appliance companies with manufacturing units in Faridabad, Pondicherry, and Pune.
It offers a wide range of products including washing machines, refrigerators, air conditioners, and kitchen appliances, and has a strong presence across India and the subcontinent. The company has grown significantly since entering India in the late 1980s, with a focus on ‘Make in India’, innovation, and consumer-centric solutions.
In Feb 2024, the US parent reduced its stake from 75% to 51% by selling 24% for ~$468 million through its Mauritius subsidiary, as part of a strategy to cut global debt. Buyers included SBI Mutual Fund, Nippon India MF, and others. Whirlpool Corporation has also indicated plans to further reduce its holding to around 20%, signaling a shift toward increased public and institutional ownership.
With a market capitalization of Rs 17,189 Crores, the company posted a revenue of Rs 7,919 Crores in FY25 up by 15.9% from Rs 6,830 in FY24. Coming to its profitability, the company reported a net profit rise of 62% to Rs 363 Crores in FY25 from Rs 224 crore In FY24. The company maintained a Return on Capital Employed (ROCE) of 13.0% and a Return on Equity (ROE) of 9.27%.
3. Sterling & Wilson
Promoter stake cut by 23.7% — from 69.4% (Mar 2021) to 45.7% (Mar 2025)
Sterling and Wilson Renewable Energy Ltd is a leading global solar EPC and O&M solutions provider, backed by Reliance Industries. With operations in 28 countries, the company has executed 22.6 GWp of EPC projects and manages 8.7 GWp under O&M. It offers turnkey solutions for utility-scale, rooftop, floating solar, and energy storage projects.
Major projects include 1,177 MWp in Abu Dhabi and 3 GW+ for NTPC in India. It is currently building one of India’s largest solar plants in Khavda, Gujarat. As of March 2025, the company has an unexecuted order book of Rs 9,096 crore. Shapoorji Pallonji has reduced its stake from 50.6% to 6.9% over four years, increasing public ownership.
With a market capitalization of Rs 7,206 Crores, the company posted a revenue of Rs 6,302 Crores in FY25 up by 107.6% from Rs 3,035 in FY24. Coming to its profitability, the company reported a net profit of Rs 86 Crores in FY25 from Rs 211 crore net loss In FY24.
The company maintained a Return on Capital Employed (ROCE) of 16.0% and a Return on Equity (ROE) of 8.24%. The stock delivered around 12.8% return in the last four years.
4. Aavas Financiers
Promoter stake cut by 23.6% — from 50.1% (Mar 2021) to 26.5% (Mar 2025)
Aavas Financiers Ltd is a retail-focused affordable housing finance company that began operations in 2011 in Jaipur, Rajasthan. It caters primarily to low and middle-income self-employed customers in semi-urban and rural areas, with a strong network of 397 branches.
Regulated by the RBI and supervised by the National Housing Bank (NHB), Aavas also benefits from NHB refinance support. The company was listed on the BSE and NSE in October 2018 and is backed by Kedaara Capital and Partners Group.
Over the last four years, Lake District Holdings Ltd. has gradually reduced its stake from 29.48% to 15.60%. On June 30, 2025, Aquilo House Pte. Ltd. became the new promoter by acquiring a 48.96% stake through a combination of open offer and multiple share purchase agreements, marking a major shift in ownership and strategic direction.
With a market capitalization of Rs 14,931 Crores, the company posted a revenue of Rs 2,355 Crores in FY25 up by 16.7% from Rs 2,018 in FY24. Coming to its profitability, the company reported a net profit rise of 16.9% to Rs 574 Crores in FY25 from Rs 491 crore net profit In FY24.
The company maintained a Return on Capital Employed (ROCE) of 10.1% and a Return on Equity (ROE) of 14.1%. The stock delivered around 31.7% negative return in the last four years.
5. Kalpataru Projects
Promoter stake cut by 23.0% — from 56.5% (Mar 2021) to 33.5% (Mar 2025)
Kalpataru Projects International Ltd. (KPIL) is one of India’s largest listed engineering and construction companies, operating across Power T&D, Buildings & Factories, Water, Railways, Oil & Gas, Urban Mobility, Highways, and Airports.
Established in 1981, KPIL has a strong global presence, executing projects in over 75 countries and currently handling 250+ ongoing projects across 4 continents.As of March 2025, KPIL has a robust order book of Rs 64,495 crore and recorded order wins worth Rs 25,475 crore in FY25.
Over the past four years, promoter holding has declined by 23% from 56.5% in March 2021 to 33.5% in March 2025, including a sharp fall from 40.6% to 33.5% in FY25, marking a significant shift in the company’s ownership structure and increased public/institutional participation.
With a market capitalization of Rs 20,137 Crores, the company posted a revenue of Rs 22,316 Crores in FY25 up by 13.7% from Rs 19,626 in FY24. Coming to its profitability, the company reported a net profit rise of 9.8% to Rs 567 Crores in FY25 from Rs 516 crore In FY24.
The company maintained a Return on Capital Employed (ROCE) of 16.0% and a Return on Equity (ROE) of 9.64%. The stock delivered around 216% return in the last four years.
Written By Rohan Pandey
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