logo
Private promoter ownership dips to 8-year low in June 2025 quarter

Private promoter ownership dips to 8-year low in June 2025 quarter

Indian Express10 hours ago
Private promoters holding in the domestic capital market declined to an eight-year low of 40.58 per cent during the quarter ended June 30, down from 40.81 per cent as on March 31, 2025.
In the April-June 2025 quarter, promoters sold Rs 54,732 crore worth of their holding on a net basis. In rupee value terms, private promoter holding stood at Rs 184.61 lakh crore as on June 30, 2025, according to a report by PRIME Database Group. This analysis is based on shareholding patterns filed by 2,086 of the total 2,131 companies listed on NSE (main board) for the quarter ending June 30, 2025.
'While promoter buying is always a positive sign, promoter selling can be due to a wide variety of reasons such as promoters taking advantage of bullish markets to take money off the table, strategic reasons like debt reduction, legacy planning, philanthropy, investment in other ventures and meeting Minimum Public Shareholding (MPS) requirement as also for personal expenses,' said Pranav Haldea, managing director, PRIME Database Group.
Besides, relatively lower promoter holding in some of the recent IPO companies and overall institutionalisation of market are also the other reasons behind decline in promoter shareholding.
Some of the companies that saw the highest selling, on a net basis, by private promoters in the June 2025 quarter included Bharti Airtel (Rs 13,059 crore), Interglobe Aviation (Rs 11,863 crore), Vishal Mega Mart (Rs 11,215 crore), Samvardhana Motherson International Ltd (Rs 6,227 crore), and Bajaj Finserv Ltd. (Rs 5,725 crore).
In the June 2025 quarter, domestic institutional investors (DIIs) continued their dominance in the stock market, the report showed.
The share of domestic institutional investors (DIIs) touched an all-time high of 17.82 per cent as on June 30, 2025, up from 17.62 per cent as on March 31, 2025, following a net investment of Rs 1.68 lakh crore during the April-June period, the report said
On the other hand, the share of foreign institutional investors (FIIs), declined further to a 13-year low of 17.04 per cent from 17.22 per cent during the previous quarter, despite a net inflow of Rs 38,674 crore (inflow of Rs 29,793 in secondary market and inflow of Rs 8,881 crore in primary market).
The increase in DIIs' share was mainly on account of domestic mutual funds (MFs) that are flush with retail money coming through systematic investment plan (SIPs). They invested Rs 1.17 lakh crore on a net basis during the quarter. Mutual funds' share in NSE listed companies reached an all-time high of 10.56 per cent as on June 30, 2025 (up from 10.35 per cent).
Besides, mutual fund players, the domestic insurance companies too invested Rs 8,076 crore on net basis during the quarter even though their overall share went down from 5.40 per cent to 5.30 per cent, the report said.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Six years since the abrogation of Article 370 in J&K, belied promises
Six years since the abrogation of Article 370 in J&K, belied promises

Indian Express

time23 minutes ago

  • Indian Express

Six years since the abrogation of Article 370 in J&K, belied promises

Article 370 was seen as a development dampener. Its abrogation was expected to bring about economic transformation in Jammu and Kashmir. The promised bargain underlying the constitutional, governance and administrative downgrade was an era of unprecedented economic growth and prosperity. The development dividend that Kashmiris had been deprived of for the last seven decades and more would be shared with them, as in the rest of the country. Today, J&K completes six years as a Union Territory. This anniversary, like a forced pause, allows us to take stock of how J&K's economy has fared as a centrally administered unit. Have the promise of opening the floodgates of corporate investments and the promises of prosperity been delivered? Far from it. The macroeconomic performance of J&K post-2019 is disappointing. J&K's $30 billion economy has grown at a much slower pace post the abrogation. The growth in Gross State Domestic Product has declined both in nominal and in real terms. The fall is much sharper in real terms, placing J&K far below the national rate of growth. As a result, the contribution of J&K to the national GDP has declined to 0.77 per cent. The tertiary sector, which accounts for 60 per cent of the local economy, has borne the brunt of the slowdown with its rate of growth getting halved to 5.8 per cent in 2023-24 from 11 per cent in 2022-23. Income growth from hotels and restaurants declined from 38 per cent to 13 per cent. The growth in real per capita income has also been halved — from 6 per cent to less than 3 per cent. In 2011-12, J&K's per capita income was 84 per cent of the national average, but now it has declined to 76 per cent. The gap between the two is the highest ever in 2024. Besides the slowdown in income growth, unemployment has been volatile post-2019 with temporary spikes much higher than earlier peaks. The unemployment rate spiked to 23 per cent in March 2023 and remained at 17 per cent in 2024. In the 15-29 age bracket, the unemployment rate of more than 30 per cent is almost double the national average. J&K is now among the states with the highest unemployment rate. It is high despite an increase in the labour force participation rate as well as the worker population ratio — this reflects economic instability. The number of workers in industry reached a decadal low in 2022-23. Even the number of factories has been stagnant at the 2016-17 level. Underlying the slower growth and higher volatility, be it output or employment, is a drop in fixed capital. J&K's fixed capital, which peaked in 2016-17, had halved by 2022-23. This drop is quite unprecedented and has not been distorted by the separation of Ladakh. The UT's government recently stated that J&K has attracted investment proposals worth Rs 84,544 crore across 42 industrial sectors. In 2023, actual investments on the ground reached Rs 2,518 crore, with 266 industrial units registered in Jammu and 148 in Kashmir. Yet, the official statistics collated by the central statistical bodies, such as the Annual Survey of Industries, show a decline in the invested capital in J&K. Capital investments started gaining momentum in 2015-16 and peaked the next year. By 2022-23, this had declined in absolute terms. In 2022-23, less capital was invested in J&K compared to what it was five years earlier. It should be obvious that the capital intensity of the economy has declined. The decline in fixed and invested capital has been accompanied by a sharp rise in borrowings — a sure recipe for a fiscal crisis. Despite better revenue mobilisation, J&K's fiscal health has deteriorated significantly with higher debt and deficits compared to pre-2019. Internal debt has almost doubled in just five years. The total liabilities of the government have also surged, making them more than half of the GSDP. The total outstanding liabilities of the government are now almost 60 per cent of the GSDP. The all-India average of states is less than half of this figure. The fiscal deficit continues to hover around 6 per cent, way above the stipulated FRBM limits. All this is despite the government earning more and spending more. The state's own revenues have increased threefold in eight years. The tax-to-GDP ratio has increased sharply from 6.3 to 8.4 per cent, a consequence of implementing GST in July 2017. Yet, they are also borrowing much more. Without investment growth, the sharp improvement in the credit-deposit ratio can be problematic. A higher credit growth is likely to be financing consumption, which can lead to a debt trap. The impact of credit growth has also been dampened by the negligible share of J&K in national credit, which is not even 1 per cent. The share in deposits, which has been growing at a slow rate, is around 1 per cent, indicating a net resource outflow. This continued low level of credit is validated by the credit-to-GSDP, which is as low as 38 per cent in 2024, compared to, say, Maharashtra, where it is 99 per cent. The low level of credit adds to the shortage of capital in an already capital-scarce economy and will have a crippling effect on the growth potential of the economy. Inflation has normally been aligned with or slightly above the national averages. This is expected of an import-dependent sub-national economy like J&K. There was a sharp spike in 2019, after which the inflation threshold has remained the same, even as the average rate of inflation has been marginally higher than earlier. J&K is a high-wage economy. Inflation has resulted in the average daily wages of agricultural or construction labour in the UT being the second-highest in the country, after Kerala. In the last six years, the historical structural features of J&K — a high-cost, import-dependent economy with parts of it being export-oriented — have only accentuated. An expansionary public expenditure policy continues as in the past, with the added feature of an overleveraged budget. Hardly the signs of an economy set for a take-off a la Rostow. It is unlikely to engender long-term sustainable economic growth, let alone transformation. The writer is former finance minister of Jammu and Kashmir

Stocks to watch: Bharti Airtel, Adani Ports, Tata Motors, Paytm among shares in focus today
Stocks to watch: Bharti Airtel, Adani Ports, Tata Motors, Paytm among shares in focus today

Mint

time23 minutes ago

  • Mint

Stocks to watch: Bharti Airtel, Adani Ports, Tata Motors, Paytm among shares in focus today

Shares of Bharti Airtel, Adani Ports, Lupin, Britannia, Torrent Power will remain in focus as the companies will declare their Q1 earnings today. Antfin (Netherlands) Holding BV, an affiliate of Ant Group, is expected to offload its entire 5.84% stake in One 97 Communications through a block deal on Tuesday. Inox India reported a 16% year-on-year rise in net profit to ₹ 61.1 crore for the quarter ending June 30, compared to ₹ 53 crore in the same quarter last year. Real estate giant DLF posted an 18% year-on-year increase in its consolidated net profit for the June quarter, reaching ₹ 763 crore. Siemens Energy India posted a net profit of ₹ 263 crore for the June quarter, marking an 80% increase compared to ₹ 146 crore in the same period last year. The company reported a consolidated net profit of ₹ 824.2 crore, marking a 10.2% decline compared to ₹ 918.2 crore in the same period last year. The electronics component manufacturer announced that its fully owned subsidiary, Kaynes Circuits India Private Limited, has signed a non-binding Memorandum of Understanding (MoU) with the Tamil Nadu government. The state-owned heavy equipment manufacturer announced that it has secured an order worth around ₹ 282 crore from the Ministry of Defence for the supply of 8x8 high mobility vehicles (HMVs). The company has named its current Chief Financial Officer, PB Balaji, as the next CEO of Jaguar Land Rover (JLR), with the appointment taking effect in November 2025. The bank has appointed Rajiv Anand as its new Managing Director and CEO, after receiving approval from the Reserve Bank of India (RBI). Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.

Promoters' holding in listed cos slip to 8-yr low of 40.58%
Promoters' holding in listed cos slip to 8-yr low of 40.58%

Hans India

time23 minutes ago

  • Hans India

Promoters' holding in listed cos slip to 8-yr low of 40.58%

New Delhi: Promoters' ownership in private listed companies declined to an eight-year low of 40.58 per cent as of June 30, 2025, following a net share sale worth Rs54,732 crore during the quarter, according to data from an initiative of PRIME Database Group. 'While promoter buying is always a positive sign, promoter selling can be due to a wide variety of reasons such as promoters taking advantage of bullish markets to take money off the table, strategic reasons like debt reduction, legacy planning, philanthropy, investment in other ventures and meeting Minimum Public Shareholding (MPS) requirement as also for personal expenses,' said Pranav Haldea, Managing Director, PRIME Database Group. 'Relatively lower promoter holding in some of the recent IPO companies and overall institutionalisation of the market are some of the other reasons behind this fall,' he added. In comparison, private promoters held a 40.81 per cent stake in the quarter ended March 2025. The last time holdings were this low was in the quarter ended September 30, 2017, when private promoter shareholding stood at 40.19 per cent. This trend has been consistent over the past three years. Over the last 13 quarters alone, promoters' share has fallen sharply by 455 basis points from 45.13 per cent on March 31, 2022, to 40.58 per cent as of June 30, 2025. According to Haldea, as long as promoters continue to hold a sizable stake after the sale, with the sale not happening at a huge discount to market price and there being no significant change in the fundamentals of the company, there is no reason to worry. This analysis is based on the shareholding data filed by 2,086 out of the 2,131 companies listed on the main board of the NSE for the quarter ended June 30, 2025. As of July 25, 45 companies had yet to submit their shareholding disclosures. Meanwhile, government holdings as promoters saw a slight increase during the quarter, rising from 9.27 per cent to 9.39 per cent. The share of Domestic Institutional Investors (DIIs) continued to climb, reaching an all-time high of 17.82 per cent as of June 30, 2025, up from 17.62 per cent in the previous quarter. This increase followed a net investment of Rs 1.68 lakh crore during the quarter.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store