Jindal Cotex Ltd (JINDCOT) — promoter pledge

Pledged promoter shares first appear in Jindal Cotex Ltd's Dec 2011 filing, covering 13.4% of promoter holding. The share of promoter holding pledged peaked at 97.3% (49.5% of total equity), most recently in Dec 2014, against 93.9% in Sep 2024. A year earlier, in Sep 2023, the figure was 93.9%. A pledge is reported in 51 of the 57 quarters of promoter shareholding data Solomo holds for this company, including each of the last 32.

6 members of the promoter group report pledged shares in Sep 2024: RAMESH KUMAR JINDAL (6.17% of the company, 100% of it pledged), RAJINDER KUMAR JINDAL (5.79% of the company, 100% of it pledged), YASH PAUL JINDAL (4.63% of the company, 100% of it pledged) and 3 others.

Ranked by share of promoter holding pledged, Jindal Cotex Ltd is #37 of the 563 listed Indian companies whose latest quarterly filing reports any pledged promoter shares.

A promoter pledge means a promoter has put their own shares up as collateral, usually against a loan. It is legal and common, and SEBI requires it to be disclosed every quarter in the shareholding pattern. It matters to other shareholders because a sharp fall in the share price can trigger a margin call: if the promoter cannot top up the collateral, the lender can invoke the pledge and sell those shares in the open market, which adds selling pressure to an already falling price and, at high pledge levels, can change who controls the company. The percentage on its own is not a verdict — the level, the direction of travel and what the borrowing funded all matter.