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Arpit Goel

19th Apr 2025 · SEBI-Registered Analyst

What is Pledged Holding and Why It Matters for Investors ???

Pledged holding refers to the shares of a company that are pledged by its promoters or major shareholders as collateral to secure loans. It's similar to how individuals might pledge property or gold to borrow funds—except here, promoters use their shares. While pledging shares doesn't always signal trouble, a high percentage of pledged holding can be a red flag, especially if the company's fundamentals are weak or the market is volatile. If promoters default, lenders may sell the shares in the open market, leading to a potential fall in stock price and erosion of investor confidence. Here are a few companies with pledged holdings exceeding 90%:

VEDL
( vedanta ) – 100% !Sagility India – 100%
ASTERDM
( Aster DM Health ) – 98.9%
HINDZINC
( Hindustan Zinc ) – 93.5% !Websol Energy – 93% Investors should always keep an eye on pledged share data as part of their due diligence process before making any investment decisions.

#EquityResearch#PersonalFinance
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