Who Owns It? · Beginner · Pro filter
Promoter pledge: what it means and how to read it
The share of the promoters' holding they have pledged as security for loans.
What is Promoter pledge?
The share of the promoters' holding they have pledged as security for loans.
A worked example
Promoters own 60% and have pledged half of it → promoter pledge of 50%.
Why does Promoter pledge matter?
If the price falls, lenders can sell pledged shares, pushing the price down further.
How do you read Promoter pledge?
0% is ideal. Investors often treat anything above 20% as a warning sign.
Reading scale
In %
None or low
Watch
High
0%10%25%50%+
On the scale used here, below 10% reads as none or low, 10% to 25% reads as watch, and 25% and above reads as high.
Lower is usually better.