{"id":3260,"date":"2021-07-15T15:39:14","date_gmt":"2021-07-15T10:09:14","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=3260"},"modified":"2022-12-30T13:14:52","modified_gmt":"2022-12-30T07:44:52","slug":"2022-guide-on-shareholding-pattern-definition-meaning-analysis","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/2022-guide-on-shareholding-pattern-definition-meaning-analysis\/","title":{"rendered":"Shareholding Pattern \u2013 Definition, Meaning, and How to Analyse"},"content":{"rendered":"\n<p>When a company issues shares to raise funds, various types of investors <a href=\"https:\/\/www.tickertape.in\/blog\/why-should-you-prioritise-investing\/\">invest<\/a> in them. They can be promoters, institutions, retail investors, and so on. Therefore, it becomes important to assess the shareholding pattern and how much stake each category has to assess the company\u2019s capital structure to make investment decisions.<\/p>\n\n\n\n<p>Let\u2019s understand what is the shareholding pattern, where and how to find it.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/2022-guide-on-shareholding-pattern-definition-meaning-analysis\/#What-is-the-shareholding-pattern\" title=\"What is the shareholding pattern?\">What is the shareholding pattern?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/2022-guide-on-shareholding-pattern-definition-meaning-analysis\/#Components-of-the-shareholding-pattern\" title=\"Components of the shareholding pattern\">Components of the shareholding pattern<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/2022-guide-on-shareholding-pattern-definition-meaning-analysis\/#1-Promoter-and-promoter-shareholding\" title=\"1. Promoter and promoter shareholding\">1. Promoter and promoter shareholding<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/2022-guide-on-shareholding-pattern-definition-meaning-analysis\/#How-to-find-the-promoter-shareholding-of-NSE-stocks-on-Tickertape\" title=\"How to find the promoter shareholding of NSE stocks on Tickertape?\">How to find the promoter shareholding of NSE stocks on Tickertape?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/2022-guide-on-shareholding-pattern-definition-meaning-analysis\/#2-Public-shareholding\" title=\"2. Public shareholding\">2. Public shareholding<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/2022-guide-on-shareholding-pattern-definition-meaning-analysis\/#SEBI-rules-for-shareholding-pattern\" title=\"SEBI rules for shareholding pattern\">SEBI rules for shareholding pattern<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/2022-guide-on-shareholding-pattern-definition-meaning-analysis\/#How-to-check-the-shareholding-pattern-of-a-company\" title=\"How to check the shareholding pattern of a company?\">How to check the shareholding pattern of a company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/2022-guide-on-shareholding-pattern-definition-meaning-analysis\/#How-to-find-the-promoter-shareholding-on-Tickertape\" title=\"How to find the promoter shareholding on Tickertape?\">How to find the promoter shareholding on Tickertape?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/2022-guide-on-shareholding-pattern-definition-meaning-analysis\/#Understanding-the-shareholding-pattern-%E2%80%93-the-thumb-rules\" title=\"Understanding the shareholding pattern \u2013 the thumb rules\">Understanding the shareholding pattern \u2013 the thumb rules<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/2022-guide-on-shareholding-pattern-definition-meaning-analysis\/#Frequently-asked-questions\" title=\"Frequently asked questions\">Frequently asked questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/2022-guide-on-shareholding-pattern-definition-meaning-analysis\/#What-is-the-meaning-of-promoters-of-a-company\" title=\"What is the meaning of promoters of a company?\">What is the meaning of promoters of a company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/blog\/2022-guide-on-shareholding-pattern-definition-meaning-analysis\/#Are-high-promoter-holding-stocks-good-to-buy\" title=\"Are high promoter holding stocks good to buy?\">Are high promoter holding stocks good to buy?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tickertape.in\/blog\/2022-guide-on-shareholding-pattern-definition-meaning-analysis\/#How-to-check-the-shareholding-of-a-company\" title=\"How to check the shareholding of a company?\">How to check the shareholding of a company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.tickertape.in\/blog\/2022-guide-on-shareholding-pattern-definition-meaning-analysis\/#What-is-the-shareholding-definition\" title=\"What is the shareholding definition?\">What is the shareholding definition?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.tickertape.in\/blog\/2022-guide-on-shareholding-pattern-definition-meaning-analysis\/#What-is-shareholding\" title=\"What is shareholding?\">What is shareholding?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What-is-the-shareholding-pattern\"><\/span><strong>What is the shareholding pattern?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A shareholding pattern is an official document that details a company\u2019s ownership pattern, comprising both promoters and non-promoters. It mentions the percentage of shareholding by the different investor classes. All listed Indian companies are mandated to disclose their shareholding pattern to stock exchanges.<\/p>\n\n\n\n<p>The shareholding pattern can also be described as a company\u2019s capital structure, where the capital is divided into various categories like promoter group shareholding, institutional shareholding, government holding, NRI holding, individual shareholding, and so on.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Components-of-the-shareholding-pattern\"><\/span><strong>Components of the shareholding pattern<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The shareholding pattern of a company is divided into the following components:<\/p>\n\n\n\n<ol><li>Promoter and promoter group shareholding<\/li><li>Public shareholding<\/li><li>Non-public and non-promoter group shareholding<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1-Promoter-and-promoter-shareholding\"><\/span>1. <strong>Promoter and promoter shareholding<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Promoter shareholding is the percentage of shares owned by the promoters of a company. The promoters are the founders of the company who hold a majority stake in the capital. They also participate in the company\u2019s Board of Directors and are responsible for making key managerial decisions.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How-to-find-the-promoter-shareholding-of-NSE-stocks-on-Tickertape\"><\/span><strong>How to find the promoter shareholding of NSE stocks on Tickertape?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>You can find the promoter shareholding of <a href=\"https:\/\/www.tickertape.in\/blog\/national-stock-exchange\/\">NSE<\/a> companies in no time on Tickertape. Follow\u00a0these steps:<\/p>\n\n\n\n<ol><li>Launch <a href=\"https:\/\/www.tickertape.in\/screener\/equity?utm_source=blog&amp;utm_medium=article\">Tickertape Stock Screener<\/a><\/li><li>Click on Add Filter<\/li><li>Search for Promoter Holding and tick the box<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2-Public-shareholding\"><\/span>2. <strong>Public shareholding<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Shares not held by promoters but by retail and institutional investors fall under this category. Public <a href=\"https:\/\/www.tickertape.in\/blog\/shareholders\/\">shareholders<\/a> can be:<\/p>\n\n\n\n<ul><li><a href=\"https:\/\/www.tickertape.in\/blog\/mutual-funds\/\">Mutual funds<\/a><\/li><li>Banks or financial institutions<\/li><li>Insurance companies<\/li><li>Foreign Institutional Investors or FII<\/li><li>Foreign Direct Investors or FDI<\/li><li>Retail investors\/common public<\/li><\/ul>\n\n\n\n<p>So, if you buy shares of a company, you fall under the public shareholding category.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"SEBI-rules-for-shareholding-pattern\"><\/span><strong>SEBI rules for shareholding pattern<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Securities and Exchange Board of India (<a href=\"https:\/\/www.tickertape.in\/blog\/securities-and-exchange-board-of-india-functions-powers-and-regulations-of-sebi\/\">SEBI<\/a>) has listed various rules regarding the shareholding pattern of listed companies. Besides issuing a statement containing the shareholding pattern every quarter, the following conditions are to be fulfilled by companies:<\/p>\n\n\n\n<ol><li>If any individual or entity holds over 1% stake in the company, the details of such an investor should be disclosed by the company. The disclosure should be done in the last 21 days of every quarter<\/li><li>Besides promoter and public shareholding, a company can have a non-public or non-promoter shareholding<\/li><li>The disclosure of the shareholding pattern should be made to the stock exchange on which the company is listed<\/li><li>If the promoters pledge their shares to raise funds, the shareholding pattern should disclose the details of such pledging by the promoters and the proportion of shares pledged as collateral<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How-to-check-the-shareholding-pattern-of-a-company\"><\/span><strong>How to check the shareholding pattern of a company?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Since the shareholding pattern is publicly available, you can easily check the details of any company. There are three ways of checking the shareholding pattern as follows:<\/p>\n\n\n\n<ul><li>Visit the company\u2019s official website or annual reports<\/li><li>Visit the stock exchange\u2019s website on which the company is listed<\/li><li>Visit the official website of the Ministry of Corporate Affairs. This website, however, might charge a nominal fee to allow you to access the details<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How-to-find-the-promoter-shareholding-on-Tickertape\"><\/span><strong>How to find the promoter shareholding on Tickertape?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Launch your desired Stock Page. Let\u2019s take the example of <a href=\"https:\/\/www.tickertape.in\/stocks\/life-insurance-corporation-of-india-LIC\/holdings?checklist=basic&amp;history=fiPctT&amp;type=mixed&amp;utm_source=blog&amp;utm_medium=article&amp;utm_campaign=\">LIC<\/a><\/li><li>Go to the <a href=\"https:\/\/www.tickertape.in\/stocks\/life-insurance-corporation-of-india-LIC\/holdings?checklist=basic&amp;history=fiPctT&amp;type=mixed&amp;utm_source=blog&amp;utm_medium=article&amp;utm_campaign=\" target=\"_blank\" rel=\"noreferrer noopener\">Holdings tab<\/a><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Understanding-the-shareholding-pattern-%E2%80%93-the-thumb-rules\"><\/span><strong>Understanding the shareholding pattern \u2013 the thumb rules<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol><li><strong>A high promoter shareholding is favourable<\/strong><\/li><\/ol>\n\n\n\n<p>If the promoters hold a considerable portion of the stock of a company, it is a good sign. It shows that the promoters are taking the biggest risks in investing in the company and believe in its profitability.<\/p>\n\n\n\n<ol start=\"2\"><li><strong>A high FII is favourable<\/strong><\/li><\/ol>\n\n\n\n<p>A high investment by foreign institutional investors is a positive sign as it shows that they trust the company to generate attractive returns.<\/p>\n\n\n\n<ol start=\"3\"><li><strong><a href=\"https:\/\/www.tickertape.in\/blog\/mitigating-portfolio-risk-through-diversification\/\">Diversification<\/a> is important<\/strong><\/li><\/ol>\n\n\n\n<p>Companies with very high promoter stakes should be viewed cautiously. A concentrated stake gives promoters the right to make crucial decisions at their discretion, which might hurt other investors. As such, diversified shareholding is a better alternative.<\/p>\n\n\n\n<ol start=\"4\"><li><strong>Change in the shareholding pattern should be assessed<\/strong><\/li><\/ol>\n\n\n\n<p>You should compare the shareholding pattern of multiple quarters to spot considerable changes. If the pattern is changing, find out why. If the promoters or foreign investors are divesting, it might indicate a loss of confidence in the company, which is a red flag. A consistent decrease in the proportion of promoter shareholding or offloading by promoters is also a cause of concern. On the other hand, increased investment by promoters or other entities is a positive sign.<\/p>\n\n\n\n<p>The shareholding pattern of a company is an indicator of the structure of its capital ownership. It is a public record that you can access to study how the company has raised funds for operations and growth. The shareholding pattern can also give you meaningful insights into the company\u2019s profitability so that you can make the right investment decisions about investing in the company.<\/p>\n\n\n\n<p>So, read the shareholding pattern using the above-mentioned thumb rules, compare the patterns of different quarters to check for any major changes and then invest in the company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently-asked-questions\"><\/span><strong>Frequently asked questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1672386068468\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-is-the-meaning-of-promoters-of-a-company\"><\/span><strong>What is the meaning of promoters of a company?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A promoter is an individual, a group of persons, a firm or an association of artificial legal persons who set up a business. A promoter need not necessarily be a founder of a business. They can be people who arrange capital and assist in carrying out other tasks of the company.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1672386075624\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Are-high-promoter-holding-stocks-good-to-buy\"><\/span><strong>Are high promoter holding stocks good to buy?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A high promoter shareholding company can be favourable as it signifies that the promoters have a positive outlook on the company and are taking the biggest risks by investing in it. However, a very high shareholding can be concerning as the promoters would have a stronger say in making important decisions, which may or may not be good for other investors.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1672386084185\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"How-to-check-the-shareholding-of-a-company\"><\/span><strong>How to check the shareholding of a company?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>You can check the shareholding of a company on a company\u2019s official website or annual reports, on a stock exchange\u2019s website where the company is listed or on the website of the Ministry of Corporate Affairs.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1672386093356\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-is-the-shareholding-definition\"><\/span><strong>What is the shareholding definition?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Shareholding means the quantum of shares an individual holds in a company. <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-equity\/\">Equity<\/a> shareholders also enjoy ownership of the company to that extent.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1672386103386\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-is-shareholding\"><\/span><strong>What is shareholding?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A shareholding means owning shares in a company. <a href=\"https:\/\/www.tickertape.in\/blog\/what-are-equity-shares-meaning-types-features-limitations-and-more\/\">Equity shares<\/a> give a stake\/ownership in the company.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>A shareholding pattern is the percentage of shareholding by different investor classes. It helps to assess the company\u2019s capital structure to make investment decisions.<\/p>\n","protected":false},"author":27,"featured_media":3262,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[1721,1749],"tags":[404],"acf":[],"modified_by":"Aradhana Gotur","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/07\/Informative-1-2.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/3260"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=3260"}],"version-history":[{"count":8,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/3260\/revisions"}],"predecessor-version":[{"id":11532,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/3260\/revisions\/11532"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/3262"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=3260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=3260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=3260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}