Company analysis

What is promoter pledge?

Promoter shares used as security for a loan.

Explained in more detail

If the share price falls far enough, the lender can sell those pledged shares, which pushes the price down further and can change who controls the company. A high or rising pledge is one of the clearest warning signs in Indian markets.

An example

For instanceA shareholding pattern showing 70% of promoter holding pledged is a serious concern.

Why this matters to you

You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.

On AlphaVik, any time promoter pledge appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.

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