There can be several reasons behind promoters decreasing their holding in the companies including capitalising on high valuations, raising funds for other purposes, meeting regulatory requirements, strategic realignment, debt reduction and many more.
Overall, the impact of promoter stake sales depends on the specific circumstances, reasons for selling, and how the proceeds are utilised. It’s important to consider each case individually rather than viewing the trend as universally positive or negative.
Here are a few stocks in which the Promoters have decreased their holdings by over 70% in the June Quarter of 2024:
In Friday’s trading session, the shares of an IT solutions provider specialising in cloud and cognitive services surged by 4.1 percent to Rs. 2,752.95 on BSE, as against its previous closing price of Rs. 2,645.4, with a market cap of Rs. 51,887 crores.
As per the latest shareholding data, the Promoters holding decreased by 15.1 percent from 55.45 percent in March 2024 to 40.35 percent in June 2024 in Mphasis.
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of 5.2 percent from Rs. 3,252 crores in Q1 FY23-24 to Rs. 3,422 crores in Q1 FY24-25.
Similarly, its net profit increased during the same period from Rs. 396 crores to Rs. 405 crores, indicating a growth of around 2.3 percent YoY.
The shares of Mphasis have delivered positive returns of nearly 16 percent in one year, as well as around 0.3 percent returns year-to-date.
Mphasis Limited is a global Information Technology (IT) solutions provider specialising in providing cloud and cognitive services, applying next-generation design, architecture, and engineering services, to deliver software and technology solutions.
In Friday’s trading session, the stock surged by 1.6 percent to Rs. 2,680 on BSE, as against its previous closing price of Rs. 2,638.65, with a market cap of Rs. 4,639.3crores.
As per the latest shareholding data, the Promoters holding decreased by 16.49 percent from 62.73 percent in March 2024 to 46.24 percent in June 2024 in Styrenix Performance Materials.
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of 28.5 percent from Rs. 544 crores in Q1 FY23-24 to Rs. 699 crores in Q1 FY24-25.
Similarly, its net profit increased during the same period from Rs. 32 crores to Rs. 61 crores, indicating a growth of around 90.6 percent YoY.
The stock has delivered multibagger returns of nearly 129.2 percent in one year and around 81.8 percent of positive returns year-to-date.
Styrenix Performance Materials Limited, formerly known as INEOS Styrolution India Limited, is engaged in the manufacturing, trading and sale of engineering thermoplastics.
The company is a market leader in the production of styrenic applications such as ABS (Acrylonitrile Butadiene Styrene) and SAN (Styrene Acrylonitrile).
In Friday’s trading session, the shares of India’s leading provider of passive telecom infrastructure surged by 0.8 percent to Rs. 420.5 on BSE, as against its previous closing price of Rs. 417.1, with a market cap of Rs. 1.12 lakh crores.
As per the latest shareholding data, the Promoters holding decreased by 16.98 percent from 68.99 percent in March 2024 to 52.01 percent in June 2024 in Indus Towers.
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of 4.3 percent from Rs. 7,076 crores in Q1 FY23-24 to Rs. 7,383 crores in Q1 FY24-25.
Similarly, its net profit increased during the same period from Rs. 1,348 crores to Rs. 1,926 crores, indicating a growth of around 42.8 percent YoY.
The shares of Indus Towers have delivered multibagger returns of nearly 143 percent in one year as well as around 105.3 percent returns year-to-date.
Indus Towers Limited is a telecommunications tower infrastructure service provider, and it deploys, owns, operates and manages telecom towers and communication structures, for various mobile operators.
Indus Towers Limited was formed by the merger of Bharti Infratel Limited and Indus Towers, and this merger created one of the largest telecom tower companies in the world.
In Friday’s trading session, the shares of this small finance bank surged by 1.4 percent to Rs. 42.95 on BSE, as against its previous closing price of Rs. 42.35, with a market cap of Rs. 8,217 crores.
As per the latest shareholding data, the Promoters holding decreased from 73.52 percent in March 2024 to 0% in June 2024 in Ujjivan Small Finance Bank.
The company experienced significant growth in its net interest income (NII), showing a year-on-year rise of 18.8 percent from Rs. 792.6 crores in Q1 FY23-24 to Rs. 941.5 crores in Q1 FY24-25.
However, its net profit decreased during the same period from Rs. 324 crores to Rs. 301 crores, indicating a decline of around 7 percent YoY.
Over the past year, the stock has delivered negative returns of nearly 12 percent, as well as about 25.5 percent of negative returns year-to-date.
Ujjivan Small Finance Bank Limited is a mass market-focused small finance bank in India, serving the financially unserved and underserved segments and is committed to building financial inclusion in India.
Written by Shivani Singh
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