In India, promoter share pledging increased across several major companies in Q4 FY25, raising potential concerns over financial strategies. Notable firms include Ola Electric Mobility and Kalyan Jewellers. Promoter pledging, commonly used to raise funds, saw double-digit growth for companies like Raymond Lifestyle and Medplus Health Services.
In Q4 FY25, promoter share pledging saw a notable uptick in several major Indian companies, including Ola Electric Mobility, Kalyan Jewellers, and Raymond Lifestyle, based on data from StockEdge. Promoter pledging is a common financial practice where company promoters pledge their shares to raise funds, either for business needs or personal use.
Raymond Lifestyle, a key player in India’s apparel and retail sector headquartered in Maharashtra, saw its promoter pledge increase sharply by 16.8%, rising from 9.4% in Q3 to 26.2% in Q4.
Kalyan Jewellers, a major jewellery retail chain based in Kerala, reported a 5.6% increase in promoter pledging, moving from 19.3% to 24.9%.
PVR Inox, a leading cinema chain operating across India, registered a 4.2% rise in pledged promoter holdings, now at 10.2%, compared to 5.9% in the previous quarter.
Emami, the Kolkata-based FMCG company, also saw a 4.2% increase, with pledges moving from 9.2% to 13.4%.
Medplus Health Services, one of the top pharmacy retailers in India, showed a significant rise of 4.1% in promoter pledges, increasing from 55.2% to 59.3%.
TVS Holdings, part of the Chennai-based TVS Group, experienced a 3.9% rise, reaching 14.4% in Q4 FY25.
Ola Electric Mobility, based in Karnataka and known for its electric scooters, reported a 3.6% increase in promoter pledges, rising from 3.0% to 6.6%.
Anupam Rasayan, a Gujarat-based specialty chemical company, posted a 3.1% increase, with pledges growing to 19.5%.
Jyoti CNC Automation, also from Gujarat, saw promoter pledging rise by 2.3%, now at 4.1% in Q4, up from 1.8% in Q3.
These shifts highlight a broader trend among Indian promoters to leverage their holdings for financial maneuvering. While not inherently negative, rising promoter pledging can sometimes indicate liquidity pressures or aggressive expansion strategies, which may warrant closer scrutiny from investors.
