New Delhi: No less than 1,174 listed companies, including giants such as TCS, Wipro and DMart, will have to pay off the promoter's commitment around the Rs 3.87 lakh crore, after the budget announcement that the minimum shareholding must be increased to 35 percent.
Her minister's budget, finance minister Nirmala Sitharaman, presented on Friday that steps must be taken to bring the capital markets closer to the people and suggested raising the threshold for minimum public participation from 25 percent to 35 percent.
Based on the latest shareholder data, a study by Center Broking Ltd shows that 1,174 listed companies have an interest of more than 65% of the promoters.
"In other words, 25 percent of the entire universe of listed companies (4,700 companies) will have to go through off-loading promoter bets to meet this requirement," it said in a report following the budget announcement.
At current market prices, the total quantity of sales to be done by these 1,174 companies works around Rs 3.87,000 crore, it added.
"Although we have to wait for the Sebi rules regarding how much time these companies are given to meet these minimum public shareholder standards, the overhang of this requirement of canceling the shareholding of a promoter can have a significant impact on markets and markets. specific stocks.
"The regulator must provide sufficient time to meet this requirement so that the markets are not flooded with the sale of the promoters' bets," said Jagannadham Thunuguntla, Senior VP & Head of Research (Wealth), Center Broking Ltd.
According to the report, the top three companies in terms of sales volume would be TCS (Rs 59,600 crore), Wipro (Rs 15,000 crore) and D-mart (Rs 14,000 crore).
Other big names in the list include Coal India, IDBI Bank, HUL, Bank of India and Punjab National Bank.
"The recommendation to increase public participation from 25 percent to 35 percent, expects the float of multiple companies to increase over the next two years, leading to different IN & # 39; s and OUTs of the Nifty currently based on free float methodology, which keeps many MNCs, insurance companies and consumer companies such as DMart in focus, "said Vinay Pandit, Head – Institutional Equities, India Nivesh Securities.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, believes that the proposal to increase public interest in listed companies is desirable, but will face practical implementation restrictions in the case of some large-cap companies .
"The measures to increase share ownership from 25 percent to 35 percent is the biggest announcement of shifting assets in the interests of ordinary men," said Jimeet Modi, founder and CEO of Samco Securities.
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