Understanding Shareholding Pattern for your Stock Market Investments...

 Read this blog to get complete knowledge on Shareholding Pattern also known as SHP. It's the most important parameter that is to be checked while investing in any company. Below are some websites listed where this information is available easily.

What is SHP or Shareholding Pattern?

Shareholding Pattern is an official document which is released every quarter by all companies as per 31st regulation pursuant of the listing regulations.

SHP contains information on diversification of the shares held by various entities like promoters, FIIs, DIIs, etc. You can check these data on website like moneycontrol.


Who are the major entities in the shareholding pattern?

    1. Promoters

    2. Foreign Institutional Investors (FII)

    3. Domestic Institutional Investors (DII)

    4. Retail Investors (general public)


Now, let's see how to do shareholding analysis:

    1. Promoter's holding

            This can be easily viewed under shareholding patterns, you may see either in numbers or through graphs. Graphs are much easier to interpret. If the promoters increase their stake in a particular company, it is considered very good and if promoters decrease their stake in a particluar company that means that the management might be losing faith which is not considered to be a good sign.

Therefore, constant or increasing stakes of promoters is considered good and decreasing stakes are not a good sign.

    2. FII's holding

            This can again be viewed easily on the below listed sites. This is considered to be one of the most important parameter. Increase in FII stake is indeed a good sign and thus acts as fuel for taking stock prices higher. Decrease in FII stake is not good sign and you much directly avoid such investments.

Therefore, constant or increasing stakes of FII is considered good and decreasing stakes are not a good sign.

    3. DII's holding

            This is very clearly visible on website like moneycontrol. This parameter must not be overlooked. Increase in DII stake means that many domestic investors are building trust over that company which is considered good. Beware of your investments in which this parameter seems missing. 

Therefore, constant or increasing stakes of DII is considered good and decreasing stakes are not a good sign.

    4. Public's holding

            Increase or decrease in Public holding might not effect too much in the stock market price. But when it's watched in context of FII, DII and MFs holding, it can be considered. 

Therefore, constant or decreasing stakes of Public holding is considered good.


To check shareholding pattern of a company in NSE, click here. 

To check shareholding pattern of a company in BSE, click here.

Two of my personal website to check shareholding patterns are:

    a) Moneycontrol (Search the stock and then click onto shareholdings from the menu bar)

    b) Trendlyne (Search the stock and then click onto share holding patterns from the search bar itself)


Let's check out some examples:

1. Adani Enterprises shareholding pattern (source = moneycontrol)


2. Adani Ports shareholding pattern (source = trendlyne)



ACTION STEPS:

Check out shareholding pattern of Nifty 50 stocks, shortlist increasing and decreasing pattern with their performance. This will help you to understand SHP in a better way.


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I wish you a very bright and financially free future. Kindly share this useful blog with your family and friends. Keep coming back for more such financial blogs.

Information sahi milegii yhi









Location: Mumbai, Maharashtra, India

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