Listed Companies with Zero Promoter Holding Mar2023 - vrk100 - 21May2023

Listed Companies with Zero Promoter Holding Mar2023

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(This is for information purposes only. This should not be construed as a recommendation or investment advice even though the author is a CFA Charterholder. Please consult your financial adviser before taking any investment decision. Safe to assume the author has a vested interest in stocks / investments discussed if any.)  

 

(This is an update of an earlier blog dated 04Dec2022)

 

On average, a little more than 50 percent of the equity shareholding in Indian listed stocks is held by promoters. However, only a handful of listed companies, out of more than 4,000 listed companies, in India have zero promoter holding. 

The following list provides a glimpse of such companies in the order of their market capitalisation (companies with a zero promoter holding as on 31Mar2023 and a market cap of more than Rs 1,500 crore as on 19May2023) > 

 

Compared to the previous data as of 30Sep2022, six companies, namely, Crompton Greaves Consumer Electricals, Equitas Small Finance Bank, Indiabulls Housing Finance, Hindustan Oil Exploration, Balmer Lawrie & Co and Subex Ltd., are added to the list of zero promoter holding between Sep2022 and Mar2023.  

 

Private equity firms Advent International and Temasek Holdings have completely exited Crompton Greaves Consumer Electricals, after buying the firm in 2016. Hence, the promoter stake is marked down to zero as on 31Dec2022.

 

As part of a Scheme of Amalgamation, Equitas Holdings Ltd was merged with Equitas Small Finance Bank effective 02Feb2023. Hence, Equitas SFB now has no promoter stake officially. 

At the top of the list by market cap are companies, like, ICICI Bank, ITC, HDFC Limited (which is in the process of getting merged with HDFC Bank Ltd), L&T and new-age company Zomato. At the other end are companies, like, Balmer Lawerie & Co, Cartrade Tech and Care Ratings. 

You may have noticed that private banks and other financial services companies dominate the above list. Other stocks include stock / energy exchanges, platform companies and those relating to new-age companies listed in the past one year or so. 

 

India's banking regulator, Reserve Bank of India or RBI, is not comfortable with promoters running the show in a bank (the fear is a bank promoter may misuse bank funds for lending to other promoter entities and ultimately troubling the bank).

 

Only a handful of private sector banks, like, Kotak Mahindra Bank, IndusInd Bank, AU Small Finance Bank, IDFC First Bank and Bandhan Bank have promoter stake of between 16 and 40 percent.

 

LIC of India has 8.2 percent stake in Axis Bank and is considered as a promoter for technical reasons. Practically, Axis Bank is run professionally similar to ICICI bank.

Technically, some firms may have zero promoter holding -- but, a set of people may hold firm control over the company practically. 

It is often argued firms with managements having high promoter stake (that is, with substantial skin in the game or family-owned businesses) will do better than firms that are run by managements with no significant shareholding. 

 

It's generally believed that a high promoter holding gives strong incentives for the owners / managers to create and sustainably generate long term value for minority shareholders. 

 

Professional managers might be tempted to work for themselves and in the process their actions may be detrimental to the long-term interests of the owners (which is known as principal-agent problem in corporate lexicon). 

 

There are certain companies with large promoter holding, but which are run by professional managers -- for example, Asian Paints, Marico Ltd, HCL Technologies, Pidilite Industries and others. In general, the promoters of these companies do not interfere in the day-to-day operations of the company. Such companies are in a completely different league.

 

Let us see, on a three- to five-year perspective, how the firms with no promoter holding will stack up against companies managed by promoters / owners.

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Weblinks and Investing

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Disclosure:  I've vested interested in Indian stocks and other investments. It's safe to assume I've interest in the financial instruments / products discussed, if any.

Disclaimer: The analysis and opinion provided here are only for information purposes and should not be construed as investment advice. Investors should consult their own financial advisers before making any investments. The author is a CFA Charterholder with a vested interest in financial markets. 

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He blogs at:

https://ramakrishnavadlamudi.blogspot.com/

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Buyback Offers and Weblinks - vrk100 - 15May2023

Buyback Offers and Weblinks

Follow @vrk100

(This is for information purposes only. This should not be construed as a recommendation or investment advice even though the author is a CFA Charterholder. Please consult your financial adviser before taking any investment decision. Safe to assume the author has a vested interest in stocks / investments discussed if any.)  

 

 

(See P.S. dated 09Jun2023. Even though this blog was written on 15May2023, I added post script at the end of the article)

 

 

This is a blog for weblinks related to buyback offers of select listed companies in India. With the weblinks, readers can look at the buyback offers and the progress of the buyback offers.

The blog will be constantly updated with brief details of the buyback offers. The latest information will be on top.

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Tweet thread on share buybacks from 16May2023 till 18Jun2026

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28Aug2026

Tweet thread 24Aug2026: GE Shipping board on 27Aug2026 approved a share buyback of Rs 900 crore at a maximum price of Rs 1,530 per share, via open market route (using mechanism of acquisition of shares through stock exchanges).

As this is open market route, promoters cannot participate in the buyback. 

The company shall utilise at a least 75% of the maximum buyback size, that is, Rs 675 crore. 

24Aug2026

Tweet thread 24Aug2026: After a gap of 4/5 years, GE Shipping (The Great Eastern Shipping Company) announced its board would meet on 27Aug2026 to consider a share buyback proposal.

This is the fourth buyback by the company in the past 12 years.

The route (whether open market or tender offer) is not yet known. 

29Jul2026

Tweet thread 29Jul2026: One may expect more share buyback announcements from India's listed companies on or after 01Aug2026, when open market route opens. 

09Jul2026

Recent buyback announcements by:

Orbit Exports (tender offer)

SIS Ltd (company's fifth buyback, company yet to announce whether it is tender or open offer mode)

20Jun2026

 

20Jun2026 Tweet SEBI circular 19Jun2026 reintroducing "open market" share buybacks in India. 

The "open market" via stock exchanges route will be effective from 01Aug2026.

Tweet 24Mar2026  PM Modi loyalist Mr Mohandas Pai tweets: :Indian stock market is in a crisis due to heavy FPI selling. SEBI should allow listed firms to do share buybacks via open market route again." - corporate lobbying - crony capitalism - 

This isn't about whether reintroduction of "open market" share buyback route is beneficial for the markets or minority shareholders.

This exposes the capriciousness of GOI / SEBI regulatory actions and how corporate lobbying and crony capitalism work. 👎 

19Jun2026

Blog "Promoters, Taxes and Buybacks: Early Trends in India’s FY 2026-27 Market" 19Jun2026  

Tweet thread dated 18Jun2026 

 

18Jun2026

Blog "Beyond Entitlement: How Tender Offer Buyback Acceptance Really Works" 18Jun2026 

Tweet thread dated 18Jun2026 

 

15Jun2026

Several past tweets on Share buybacks; buyback tax, dividend distribution tax (DDT) and other buyback related things >

23Mar2026 Tweet thread new tax rules on share buybacks (interesting case of Puretrop Fruits Ltd buyback)

01Feb2026 Tweet thread - no need for Bhalle Bhalle on this buyback proposal

23Dec2024 Tweet thread - Dividends / buyback announcements by companies are influenced by capricious changes in taxes. Dividend distribution tax (DDT) was introduced and later it was abolished. Now, dividends are taxable in investors' hands (taxtortion by PM Modi gov't). 

01Mar2020 Tweet thread Effective #Buyback tax rate payable by Indian companies is 23.3%. What route (whether buyback, dividend or other) firms would adopt to distribute their excess cash if any--after DDT is abolished?

Some companies that have bought back their equity shares in the past two years >

 

22Sep2020 Tweet shareholder yield (buyback plus dividends)

06Jul2019 Tweet  Union Budget: 20% tax slapped on #buyback of shares by listed companies:

How will firms avoid this legally?

Will firms retain their cash in the B/S without paying dividend or doing buyback?

Firms with > 50% promoter stake were doing buybacks instead of dividends

 

  

03Apr2026

 

Tweet dated 03Apr2026

 

SEBI consultation paper: Re-introduction of Open Market Buy-Back of Shares or Other Specified Securities through Stock Exchange (due to political lobbying?)

 

 

23Mar2026

 

Tweet dated 23Mar2026:

 

Blog "India’s New Buyback Tax Rules from Apr2026: What It Means for You" 22Mar2026

 

Taxation rules of share buybacks on or after 01Apr2026  

 

The following is a select list of companies that have undertaken buybacks frequently in recent years. 

My educated guess is some of these companies may undertake buybacks after 1st of April, given the past trends, changes in buyback taxation and steep fall in valuations of some stocks.

 

Ajanta Pharma

Balrampur Chini Mills

eClerx Services

Emami Ltd

FDC Ltd

Garware Technical Fibres

Infosys

Kaveri Seed Company

SIS Ltd

Tanla Platforms

TCS Ltd

Welspun Living 

 

16Sep2025 

 

Tweet thread 16Sep2025

 

Blog: A Layperson's Look at India's Complicated Tax Rules on Share Buybacks 16Sep2025

 

Taxation rules of share buybacks before 01Oct2024 

Taxation rules of share buybacks after 01Oct2024  

 

No grandfathering of cost of acquisition > 

 

Tweet 16Sep2025: "There is no grandfathering of cost of acquisition.. so any purchase before 31/1/2018 .. buyback will result in more tax !!" 

 

 

03Jan2025

 

Tweet dated 03Jan2025:

 

Select list: buyback offers via tender offer > 

 

Where market price is lower than the maximum buyback price:

 

E.g., Aarti Drugs is quoting at nearly 50% discount to its buyback price of Rs 900. Most of the select firms are quoting at a steep discount to the maximum buyback price.

 

Possible reasons for the current market price or CMP at a steep discount to the buyback price:

 >Promoters may have just utilised favourable taxation that existed prior to 01Oct2024 - meaning buyback price was too high.

> Stock is mispriced
> Company fundamentals may have weakened
> No investor fancy
> Slowing growth

It my be noticed that the percentage of shares extinguished via buybacks is less than 2% in most of the cases, except in Matrimony.com, where 3.2% of total equity share capital was extinguished via buyback in 2024.

 

 

 

Tweet dated 03Jan2025:  

 

Select companies that have undertaken share buybacks frequently in the past five years, that is, between CY 2020 and 2024 >

 

Aarti Drugs
Ajanta Pharma
Balrampur Chini Mills
FDC
Jagran Prakashan
James Warren Tea
SIS
Tips Music

This may not be repeated in future.

 

24Dec2024

 

Tweet dated 24Dec2024: BSE weblinks for share buybacks

 

02Oct2024

 

Tweet dated 02Oct2024: changes in share buyback tax regime wef 01Oct0224 as per Union Budget presented on 23Jul2024

 

26Jul2024

 

Cera Sanitaryware Ltd > Intimation dated 26Jul2024 for Board meeting on 05Aug2024 for considering buyback proposal

 

13Oct2023

 

Tender offer > TCS Ltd > 06Oct2023 Board meeting announcement for considering buyback proposal - 11Oct2023 Board approved buyback of Rs 17,000 crore at maximum buyback price of Rs 4,150 -

 

 

21Sep2023

 

Tender offer > Larsen & Toubro Ltd - buyback opened on 18Ssep2023 and closed on 25Sep2023 - SEBI weblink for Letter of Offer and others - Tweet 13Sep2023 buyback price revised upwards to Rs 3,200 per share  -  BSE buyback weblink and demand schedule - post buyback announcement dt 29Sep2023

 

30May2023

 

Tender offer > James Warren Tea - Board meeting announcement on 24May2023 (after market hours) - tender offer buyback approved on 29May2023 (after market hours) - wild movement in stock price between 24May2023 and 30May2023 -

 

 

26May2023

 

Tender Offer > Hinduja Global Solutions Ltd - cumulative shares bought back / BSE demand schedule - Letter of Offer dt 11May2023 for buyback -  Board meeting announcement on 14Dec2022 - tender offer buyback approved on 19Dec2022 - post buyback announcement dated 09Jun2023

 

 

21May2023

 

Tender Offer > Goldiam International Ltd - Board meeting announcement on 04May2023 - tender offer buyback approved on 20May2023 -

 

 

15May2023

 

Open market Balrampur Chini Mills Ltd - BSE Cumulative shares bought back - closure of buyback on 15May2023

 

Open market VLS Finance Ltd - BSE Cumulative shares bought back - closure of buyback on 29May2023

 

Open market Emami Ltd - BSE Cumulative shares bought back

 

Tender offer > Teamlease Services - BSE demand schedule - post buyback announcement 06Jun2023

 

Tender offer > Symphony Ltd - BSE demand schedule

 

 

15May2023 General weblinks

 

SEBI (Buyback of Securities) Regulations, 2018 (last amended on 03Aug2021) - SEBI Buyback norms - SEBI buyback regulations

 

08Mar2023 SEBI circular -  Gazette of India dated 07Feb2023 - Buyback route through open market via stock exchanges - curbs on bids, price and volume

 

BSE weblink for buyback offers (current offers)

 

BSE weblink - historical public issues - drop down menu - (like, buyback tender offer, buyback open market, delisting, takeover, take over, IPO, OFS,  rights issue, InvITs, REITs, etc.)

SEBI buyback issues -  drop down menu - tender offers & open market purchase via stock exchanges

BSE Live public issues - drop down menu - buyback, OFS, rights, takeover, delisting, etc. 

IPO Central - upcoming buybacks (both tender offer and open market route) - buyback

IPO and More - Info on IPOs, Buybacks, special situations, corporate actions, etc. 

KFinTech buyback offers details - tender form download, Letter of Offer, share transfer deed and other details (dropdown menu) 

IPO and More - list of buybacks  

Screener.in - (after login) search results for 'buyback,' or 'consider buyback' in the search bar of Screener (top right corner) -- other search words are: rights issue / scheme of arrangement / spin off / amalgamation / bonus issue / share split / stock split / voluntary delisting

Screener.in (after login) first screen - Companies that have Buyback  offers in recent year (based on Screener.in query > (Number of equity shares < Number of equity shares preceding year)

Screener.in (after login) second screen - Companies that have Buyback  offers in recent year (based on Screener.in query > (Number of equity shares < Number of equity shares preceding year) 

BSE corporate announcements -  corporate action like buyback / buy back, bonus shares, rights issues, amalgamation, merger, demerger, stock split, spin off, etc. ; financial results, quarterly results, shareholding pattern or SHP updates, SAST, insider trading, etc. 

BSE Security-wise corporate actions (dropdown menu) - stock wise corporate actions, like, amalgamation, buybacks (only 'tender offer' route), dividend, rights issue, scheme of arrangement, share split, bonus, etc.  

BSE Security-wise corporate actions (dropdown menu) - stock wise corporate actions, like, buybacks (only 'tender offer' route), dividend, share split, bonus, etc. 

KFinTech buyback allotment and entitlement ratio status - also Letter of Offer (LOF), tender form, etc. - buyback status

LinkInTime buyback allotment and entitlement ratio status - also Letter of Offer (LOF), tender form, etc. - buyback status

Bigshare Services buyback allotment and entitlement ratio status - also Letter of Offer (LOF), tender form, etc. - buyback status

 

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P.S. 09Jun2023:

It's strange prospective investors want to know "beforehand" the entitlement ratio and acceptance ratio of buyback offers - Tweet 23May2023

 

- another Tweet 23May2023: "what is the difference between acceptance ratio and entitlement ratio?"

(I have, over the years, analysed a number of companies' buyback offers. You can check them in the related blogs section below)

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Related Blogs:

Kaveri Seed Company Buyback Offer 2023

Buyback Offers and Weblinks

Wipro Ltd buyback offer 2023

When is the Next Buyback Offer Likely?

Ajanta Pharma Buyback Offer 2023

Natco Pharma Buyback Offer 2023

Indian Energy Exchange Buyback Offer 2022

Jagran Prakashan Buyback Offer 2022

Kaveri Seed Company Buyback Offer 2022

Infosys Limited Buyback Offer 2022

Zydus Lifesciences Buyback Offer 2022

FDC Limited Buyback Offer 2022

GE Shipping Company Buyback Offer 2021  

Kaveri Seed Company buyback offer 2021

Crompton Greaves Buyback Offer 2013

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Disclosure:  I've vested interested in Indian stocks and other investments. It's safe to assume I've interest in the financial instruments / products discussed, if any.

Disclaimer: The analysis and opinion provided here are only for information purposes and should not be construed as investment advice. Investors should consult their own financial advisers before making any investments. The author is a CFA Charterholder with a vested interest in financial markets. 

CFA Charter credentials  - CFA Member Profile

CFA Badge

 

He blogs at:

https://ramakrishnavadlamudi.blogspot.com/

https://www.scribd.com/vrk100

Twitter @vrk100