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    Promoters have just raised stakes in these firms: Good news in store?

    Synopsis

    Promoters raise stake in a business usually when they find value in the stock.

    Gain-and-rise---TSThinkStock Photos
    Tata Steel and Adani Ports are two Nifty50 companies where promoters increased stake during the quarter.
    Who knows a business better than its promoters?

    As the domestic equity market went through a bad patch, swinging between gains and losses all through March quarter, promoters of as many as 170 companies (excluding PSU banks) from across sectors grabbed the chance to raise stakes.

    Promoters raise stake in a business usually when they find value in the stock or prepare for a positive development in the company. Sometimes, they do so to prevent possible hostile acquisition.

    Share price data shows 75 per cent of the 170 companies, where promoters raised their holdings, were witnessing a sharp downturn through the quarter.

    IT firm Polaris Consulting and pharmaceutical company TTK Healthcare saw substantial increase in promoter holdings during the quarter gone by.

    Polaris saw promoter holding go up to 92.64 per cent in Q4FY18 from 74.22 per cent in Q3FY18, whereas in TTK Healthcare, owners’ stake jumped to 74.57 per cent from 65.41 per cent. The two stocks have risen up to 27 per cent between January 1 and April 20 this year.

    The Nifty index is up 1.23 per cent to 10,564 during this period.

    Among others, Kesoram Industries, GTL Infra, SORIL Holdings, Sunil Hitech, Pitti Laminations and Take Solutions saw promoter holding go up during the quarter gone by. The two stocks have failed to deliver positive returns to investors during the calendar.

    The board of SORIL Holdings recently approved company’s name change to ‘Indiabulls Integrated Services Limited’, whereas shareholders of Pitti Laminations have approved change in the company’s name to Pitti Engineering.

    Tata Steel and Adani Ports are two Nifty50 companies where promoters increased stake during the quarter.

    Among power companies, promoters of Adani Power and Satluj Jal Vidyut Nigam (SJVN) raised stake in Q4. The two stocks are down 4 per cent and 39 per cent, respectively, for the year.

    Public sector power generator SJVN has signed an MoU with the Union Power Ministry, aiming to generate 9,200 million units of electricity.

    In the financial space, Indiabulls Ventures, Capri Global and Kalyani Investment saw promoter holdings go up during the quarter.

    Among auto ancillary firms, promoters hiked stakes in Lumax Industries to 74.65 per cent from 73.53 per cent. Sree Rayalaseema Hi-Strength Hypo and Poddar Pigments saw a rise in promoter holdings in the chemicals space.

    Among others, Supreme Petrochem, Mangalam Cement, Kalyani Steels, Websol Energy, Gateway Distriparks, Simbhaoli Sugars, and Sunil Hitech saw a spike in promoter holdings during the quarter. Shares of these companies have slipped between 10 and 50 per cent since January this year.






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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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