A big relief in the release of stocks pledged to promoters by the rise of stock markets

Mumbai, Ta. 19 January 2021, Tuesday

The rise in the stock market over the past few months has seen an increase in the amount of redemption by the company's promoters who had mortgaged their shares to raise funds. Of the 30 companies, most of which are mid- and small-caps, the promoters of eight companies sold their pledge shares in the December quarter, according to the data.

Numerous promoters of the company were forced to raise money by pledging their shares during March-April last year due to money laundering during the lockdown imposed by Corona.

In addition, the promoters, who had earlier mortgaged the shares to get money, were forced to pledge more shares.

The promoters breathed a sigh of relief and released their pledge shares due to the steady rise in the stock market after May and the unprecedented rise in stock prices.

In the September quarter of 2020, promoters pledged some of their estimated holdings of Rs 2 lakh crore, according to the data.