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BSE firms push promoter pledge share ratios above 90%, June count rises
Promoter holdings pledged at more than 90% of promoter shares rose to 34 companies in June from 30 in March, raising concerns about potential margin calls and forced selling if prices fall.
LiveMint Markets reports that the number of BSE-listed companies with promoter holdings pledged above 90% increased to 34 in June, up from 30 at the end of March and 32 a year earlier, according to a Mint analysis of 4,384 BSE-listed firms using Ace Equity data.
The piece notes that promoters typically pledge shares as collateral to raise funds, and that pledging does not always signal financial stress. However, unusually high pledge levels can leave companies vulnerable to margin calls and forced selling if their share prices decline, especially when pledge ratios remain elevated.
It says the June quarter increase was driven by four additional companies reporting higher encumbered shares, which pushed more firms past the 90% pledged threshold. Mint also points to a resurgence after moderation in the second half of FY26.
LiveMint Markets highlights examples where pledge ratios moved sharply, including Mphasis reaching 100% pledged in Q1, Cohance Lifesciences rising to 94.56% from zero, and Goa Carbon climbing to 92.75% from zero, alongside other cases where pledging increased from nil to above 70%. Stoxkart CEO Pranay Aggarwal is cited urging investors to look beyond the headline pledge percentage and consider reasons for the rise, including promoter debt and liquidity, the borrowing purpose, any pledge invocation activity, and leverage.