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Ownership
Also called: Pledged shares, Pledging, Pledged percentage
A promoter pledge is when a company's promoters use their own shares as collateral for a loan. The pledged percentage is the share of the promoters' holding that is pledged.
Promoters own 50 crore shares and have pledged 10 crore of them to a lender. The pledged percentage is 20%. If the share price falls far enough, the lender can sell pledged shares to recover the loan.
It is not their stake in the company — it is how much of that stake can be sold if the loan is called.
Zero is the ordinary state. A large pledged share plus a falling price is how Indian promoter stakes unwind into forced selling.
| Below 1% | Nothing meaningful pledged. |
|---|---|
| 1% to 20% | Some of the founder stake is collateral. |
| Above 20% | A large share of the founder holding is pledged. |
Rough conventions for an ordinary company; sectors differ. A range is not a buy or sell level.
A promoter pledge is when a company's promoters use their own shares as collateral for a loan. The pledged percentage is the share of the promoters' holding that is pledged.
Promoters own 50 crore shares and have pledged 10 crore of them to a lender. The pledged percentage is 20%. If the share price falls far enough, the lender can sell pledged shares to recover the loan.
No. Promoter pledge describes one aspect of a company, a price or a contract, and it is best read alongside other numbers and the business itself. Jivani Markets is a research and education platform; it does not give buy, sell or hold recommendations.