Stocks that will be hit by Budget move to raise public float to 35%
Top three companies in terms of quantum of sale would be TCS , Wipro and D-mart.
By ETMarkets.com | Updated:
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Based on the latest shareholding data available, Centrum Broking's research showed 1,174 listed companies where promoter shareholding is above 65 per cent.
Finance Minister Nirmala Sitharaman in her maiden Budget speech on Friday urged Sebi to consider increasing the minimum public shareholding in listed firms to 35 per cent from 25 per cent. If Sebi goes ahead with the proposal, shares of many MNCs and companies with high promoter shareholding could see some negative action.
Based on the latest shareholding data available, Centrum Broking's research showed 1,174 listed companies where promoter shareholding is above 65 per cent. In other words, 25 per cent of the entire universe of listed companies (~4,700 companies) will have to go through off-loading promoter stakes to meet this requirement.
At the current market prices, the total quantum of sale that needs to be done by these 1,174 companies works out to about a whopping of Rs 3,87,000 crore.
"While the market awaits Sebi regulations regarding how much time will be given to these companies to meet the minimum public shareholding norms, the overhang of this requirement of off-loading of promoter shareholding can have significant impact on the markets and the specific stocks," said Jagannadham Thunuguntla, Sr. VP & Head of Research (Wealth), Centrum Broking.
Top three companies in terms of quantum of sale would be TCS (~Rs.59,600 crore), Wipro (~Rs.15,000 crore) and D-mart (~Rs.14,000 crore), according the data shared by Centrum.
Here is a list of 20 companies with requirement of largest quantum of sale:
