Top 5 Companies With Rising Pledged Positions

With better times in the markets, investors tend to shrug off the concerns regarding any stock or sector. One such factor is the pledged position of the promoters. This is a critical data that points towards the financial health of the promoters. Here in this article we are looking at 5 such companies where the pledged position of the promoters has increased on a sequential basis till Q3FY14. The better way to interpret this data is that higher pledge increases the volatility in the scrip of the company. We have selected only those companies whose market capitalisation is higher than Rs 2500 crore.

Jyothy Laboratories: FMCG major Jyothy Laboratories, is the one which has featured as the number one company in the list. Till the end of Q2FY14 the promoter had pledged nil shares. But at the end of the quarter this figure has risen to 41.82% of the promoter holding of 66.7%. The stock on YTD basis has remained flat.

Religare Enterprises: Promoted by the erstwhile promoters of Ranbaxy Laboratories, Religare Enterprises offers all kind of financial services which include broking, investment banking, insurance, mutual funds to name a few. The promoters of the company till Q3FY14 had pledged 68.28% of their holding of 60.71% witnessing a rise of 1580 basis points on a sequential basis. On a YTD basis the stock has generated a negative return of 1.30%.

Fortis Healthcare: Promoted by the Singh brothers of Religare Enterprises the company provides healthcare services through its multi specialty hospital chains across India. Here also, the pledge position of the promoters has gone up by 1233 basis points on QoQ basis to stand at 71.26% of the promoter holding of 71.34% in the company. The stock prices of the company on a YTD basis has fallen by 7.65%.

Unitech: The promoters of real estate major have pledged 90.35% of their holding of 48.27% in the company as of December 2013. As of September 2013, this figure stood at 83.11%. The stock prices have fallen by 26.92% on YTD basis.

Jaiprakash Power Ventures: Promoted by the Jaiprakash Group, the promoters of this company have pledged 97.35% of their holding of 64.96% in the company as of Q3FY14. The pledged position of the company has gone up by 618 basis points on a sequential basis. On YTD basis the stock has generated a negative return of 13.63%.