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PROMOTER HOLDING is ZERO, a BIG ZEROOOOOOOOOOOOOOOOOOOO

From : Rochak Parekh at 09:32 PM - Sep 30, 2010 ( )
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asian electronics

zero

a big zero

 is it really possible that promoter holding become zero in any company




In Reply to above Message (1 to 16 out of 16) -- Latest Replies are put on Top | First | << Previous | Next >> | Last |

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From : Subra Maniam at 12:15 PM - Jun 26, 2011 ( )


What abt ICICI 100% free float and heavy weight in bank nifty





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From : Sunil Ramidi at 07:32 AM - Jun 26, 2011 ( )


Guys from where can we get to see the promoters holding???





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From : Ravi N S at 01:29 AM - Jun 26, 2011 ( )


ITC/ L&T NO PROMOTERS.. Surprised Sealed





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From : Ranganath Kodanda at 01:23 AM - Jun 26, 2011 ( )


L&T, ITC, no promotors





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From : Ravi N S at 01:04 AM - Jun 26, 2011 ( )


HI

ANY UPDATES ?





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From : Rochak Parekh at 02:51 PM - Oct 11, 2010 ( )


what shud be our parameter, or filter to track such companies on bse

can u please give me the link

thanks





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From : Thiruvengadam Narasimhan at 12:05 PM - Oct 11, 2010 ( )


there are lot of companies arelike that u can chek in BSE





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From : Rochak Parekh at 12:02 PM - Oct 11, 2010 ( )


24 to 31 is a healthy 30 % gain





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From : Rochak Parekh at 11:20 AM - Oct 11, 2010 ( )


It was 24, its deep rock solid bottom price

when i diverted the attention of fellow board members to comment on it





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From : Sai Nath at 10:56 AM - Oct 11, 2010 ( )


The company alloting 30 lakhs shares to its promoters, thats why stock is up.





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From : Rochak Parekh at 10:42 AM - Oct 11, 2010 ( )


look

i had highlighted asian electronics just 8 days ago





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From : Rochak Parekh at 10:45 AM - Oct 01, 2010 ( )


stock has fallen from a high made 550, to a low of 24 & also lower, it has scored

is it worth taking risk, in such kind of companies, where promoters holding is very low ?





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From : Rochak Parekh at 11:50 PM - Sep 30, 2010 ( )


thanks abhay

urs is a helpful, article





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From : Rochak Parekh at 11:25 PM - Sep 30, 2010 ( )


what are the important & vital conclusions, that are to be made with the help of this fact, that the promoter holding is close to zero & company is listed





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From : Abhay Singh at 11:25 PM - Sep 30, 2010 ( )


Many promoters have increased/decreased their equity stake last recent quarters.  Reviewing the change in shareholding pattern, specially that of promoters, could be useful to the investors. As a rule of thumb, higher promoters stake is perceived as positive and a lower equity stake could mean low confidence of promoters in their own company.  Rise in promoter stake is considered positive as promoters will commit additional fund only when they are optimistic about future growth of their company. 
 
Rise or fall in promoters holding is to be studied by looking at two aspects, First what is purpose of promoters in raising or reducing their equity stakes, second, the methods promoters have adopt to increase or reduce their ownership.
 
An increase in promoter stake does not always constitute a sign of confidence.  It is also necessary to see whether fresh funds have come in.  If fresh fund have been invested, where will there be invested.  Answers to these questions would help investors to determine whether jump in promoter stake is beneficial to the company. 
 
In few cases, promoters put in additional funds to retire debt and strengthen their balance sheet.  This is certainly positive for the shareholders. 
 
Similarly, companies that have gone for share buy back also see rise in promoters stake.  The core objective of a buyback is to create wealth, but it also increases promoters equity stake at no additional cost.
 
On the contrary, when companies that have opted for rights issues promoters forced to step in to bail out the unsubscribed portion, there is an unintentional rise in promoters stake.  Shareholders declining to subscribe to rights issue and promoters chipping to rescue the issue does not qualify to be positive development. 
 
 
Similarly, a decline in promoter holding should also be analyzed in detail.  Decline in promoter holding can be due to various factors such as fresh issues of equity shares to non-promoters through QIB, offer of GDRs and so on.  Also, it could be due to reason such as issuing fresh share towards employee stock option, or it could be due to offloading/issuing of fresh shares to strategic/financial partners.
 
Many companies have garnered financial resources through offloading fresh equity shares to QIB (Qualified Institutional Buyers).  As a matter of fact, QIBs have helped many companies to remain afloat during difficult times of 2009.
 
However, promoters offloading their holdings in the open market is a warning signal.  Some dubious companies announce positive development periodically, promoters keep on offloading equity stake at the same time.  It is well laid-out trap for investors.
 
 
While studying the change in shareholding pattern, particularly that of promoters, it is imperative for investors to establish whether it is beneficial to the company.  For instance, cash coming into the business is positive for company.   However, rise in promoters stake due to merges or buyback means little for investors in real terms. 
 
Establishing whey promoters’ equity stake has gone up or down is not an easy task in many mid/small companies.  Therefore, investors have to be cautious and find out the nature of transaction that has led to change in promoters holdings.
Posted by StocksMasters at 11:41 PM
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From : Rochak Parekh at 11:09 PM - Sep 30, 2010 ( )


my query

is it actually possible that a company is listed & its promoter holding is zero




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