Promoters of companies sometimes use their shares as collateral to secure loans for various reasons like business expenses. While pledging shares, promoters maintain ownership. However, because share prices fluctuate, the value of the collateral changes too.
Here are a few companies where the Promoters have reduced the pledge over their holding to zero.
Bharat Forge Limited
With a market capitalisation of Rs. 65,037.5 crores, the share price of this defence stock moved up by 1.8 percent on BSE to hit an intraday high at Rs. 1,437.05 on Friday, compared to its previous closing price of Rs. 1,412.15.
In Q4 FY23-24 the Promoters of Bharat Forge revoked the pledge on their holdings in the company, which previously accounted for 7.12 percent in Q3 FY23-24.
In terms of financials, the company’s revenue from operations stood at Rs. 4,164.21 crore in Q4 FY23-24, increasing by 14.7 percent from Rs. 3,629.05 crore in Q4 FY22-23, accompanied by an increase in the net profit by 77.8 percent from Rs. 127.74 crore to Rs. 227.12 crore, during the same period.
Bharat Forge Limited, a flagship company of Kalyani Group, is engaged in the manufacturing and selling of forged and machined components including aluminium castings for the auto and industrial sectors.
Lemon Tree Hotels Limited
With a market capitalisation of Rs. 11,297.43 crores, the share price of this hospitality stock moved up by 1.2 percent on BSE to hit an intraday high at Rs. 147.25 on Friday, compared to its previous closing price of Rs. 145.5.
In Q4 FY23-24 the Promoters of Lemon Tree revoked the pledge on their holdings in the company, which previously accounted for 3.34 percent in Q3 FY23-24.
In terms of financials, the company’s revenue from operations stood at Rs. 289 crore in Q3 FY23-24, increasing by 23.5 percent from Rs. 234 crore in Q3 FY22-23. However, the net profit fell by 10.2 percent from Rs. 49 crore to Rs. 44 crore, during the same period.
Lemon Tree Hotels Limited (LTHL) is one of India’s largest hotel chains and owns, leases, operates or franchises hotels across the upscale, upper-midscale, midscale and economy segments.
Tata Communications Limited
With a market capitalisation of Rs. 49,622.8 crores, the share price of the stock moved up by 1.3 percent on BSE to hit an intraday high at Rs. 1,748.05 on Friday, compared to its previous closing price of Rs. 1726.20.
In Q4 FY23-24 the Promoters of Tata Communications revoked the pledge on their holdings in the company, which previously accounted for 3.14 percent in Q3 FY23-24.
In terms of financials, the company’s revenue from operations stood at Rs. 5,692 crore in Q4 FY23-24, increasing by 24.6 percent from Rs. 4,569 crore in Q4 FY22-23, accompanied by a decline in the net profit by 1.5 percent from Rs. 327 crore to Rs. 322 crore, during the same period.
Tata Communications, a part of the Tata Group, is a leading global digital ecosystem enabler and is the primary provider of international and national voice and data transmission long-distance services, internet dial-up and broadband services and other value-added services.
Written by Shivani Singh
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