Promoters hike stake in over 200 companies on brighter prospects

For instance, Adani Group increased its stake in Ambuja Cement from 63.15% to 66.70% in the March quarter by converting the warrants issued in October 2022. Aditya Birla Group increased its stake in Grasim by 31 basis points to 43.06% in the March quarter by subscribing to the rights issue.

"With the structural growth story in India remaining strong, we view these additions by promoters as a play on both the increasing consumption domestically and an expected pick-up in exports," said Manish Chowdhury, head of research, StoxBox. "The recent share purchases by promoters indicate that they are confident of the company's outlook and business performance going ahead."

Agencies

When promoters increase their holdings in companies, it is seen as a positive sign by investors. Founders are perceived to know best about their companies' prospects.

Companies such as , , , , , , , , and are among companies where promoters have raised stake in March 2024 quarter.

"If the industry, the company operates in, is expected to grow, promoters might be strategically increasing their stake to benefit from the upswing," said Amit Goel, chief global strategist, Pace 360.

Himadri Speciality's promoters have increased their stake by 5.5% from 44.79% to 50.29%. Sanjiv Goenka's family has increased stake in from 59.0% to 63.51%.

Among others, promoters of Electrosteel Castings have raised their stake from 44.08% to 46.22%, while Gokul Agro's founders increased their stake in the company from 72.56% to 73.62%.

Securities and Exchange Board of India regulations permit promoters to purchase up to 5% stake in their companies in any financial year from the secondary market through the creeping acquisition route.

The stake increases by founders have happened amid concerns about share valuations - especially in the mid-cap and small-cap space - being elevated. Analysts said many of them might have raised stakes during the market selloff in March.