# Shareholding Pattern Analysis > Read an Indian listed company's quarterly shareholding pattern for promoter behaviour, pledge risk, institutional flows and free-float dynamics. Use when the user asks who owns a company, whether promoters are selling, how much stock is pledged, whether FIIs or mutual funds are buying, or wants ownership tracked across quarters for an NSE/BSE-listed entity. - Skill: `sharma23yash-oss/shareholding-pattern-analysis` (Agent Skill) - Install (CLI): `npx skillmds@latest add sharma23yash-oss/shareholding-pattern-analysis` - Raw SKILL.md: https://api.skillmd.com/api/skills/sharma23yash-oss/shareholding-pattern-analysis/raw - Safety review: pending - Works with: Claude Code, Claude.ai, OpenAI Codex - Category: Coding & Dev Tools - License: MIT - Author: sharma23yash-oss (https://skillmd.com/u/sharma23yash-oss) - Updated: 2026-09-17 - Page: https://skillmd.com/skills/sharma23yash-oss/shareholding-pattern-analysis --- # Shareholding Pattern Analysis (India) Filed quarterly under SEBI LODR Regulation 31, within 21 days of quarter end. It is the most under-read high-signal document in Indian markets: it shows what owners *did*, not what management *said*. ## The structure | Category | What it contains | |---|---| | **(A) Promoter and Promoter Group** | Indian and foreign promoters, promoter-group bodies corporate, trusts | | **(B) Public** | Institutions and non-institutions | | — Institutions | Mutual funds, AIFs, banks, insurance companies, FPIs, NBFCs, pension funds | | — Non-institutions | Individuals (split at ₹2 lakh nominal share capital), NBFCs, trusts, NRIs, bodies corporate | | **(C) Non-Promoter Non-Public** | Shares held by employee trusts, ESOP trusts, depository receipts | Plus mandatory annexures: shares pledged or otherwise encumbered, shares in dematerialised form, and a list of shareholders holding more than 1%. ## What to build Track at least 8 quarters: ``` | Quarter | Promoter % | Pledge % of promoter | FPI % | MF % | Insurance % | Retail % | # of retail holders | ``` Derive: ``` Free float % = 100 − promoter % − non-promoter non-public % Free float market cap = market cap × free float % Institutional % = MF + FPI + insurance + banks + AIF + pension Pledge (as % of total equity) = promoter % × pledge % of promoter holding ``` ## The signals, ranked ### 1. Promoter stake change - **Promoter selling into strength** while guiding for growth is the single most reliable negative signal in Indian mid-caps. Check whether the sale was disclosed as a bulk/block deal or crept down 0.3% at a time. - **Creeping acquisition** — under SAST Regulations a promoter above 25% can acquire up to 5% per financial year without triggering an open offer. Steady buying inside that limit is a genuine positive. - **A fall of exactly the pledge amount** usually means invocation, not a sale. Cross-check the encumbrance annexure and the Reg 31(1) pledge disclosure. - Promoter % can also fall from dilution (QIP, preferential issue, ESOP exercise, conversion of warrants) without any promoter selling a share. **Always reconcile against share count, not just percentage.** ### 2. Pledge ``` Pledge % of promoter holding Reading 0 Clean 1–10% Monitor 10–25% Material; understand the borrowing 25–50% Structural risk; model an invocation scenario >50% Treat the equity as an option on promoter solvency ``` A pledge increase in a falling market is a margin call in progress. Also look for "otherwise encumbered" — non-disposal undertakings and negative liens are disclosed separately and are economically similar. ### 3. Institutional flows - **Mutual fund entry** is a quality filter: Indian AMCs run internal governance screens and take positions slowly. First-time MF entry into a small-cap is meaningful. - **MF exit across multiple houses in one quarter** is a stronger signal than any single fund's move. - **FPI %** — separate long-only from ETF/index flows. An index inclusion event (MSCI, FTSE, Nifty rebalancing) mechanically moves FPI % without any view being expressed. - **Insurance company entry** (LIC in particular) is slow, valuation-sensitive money and rarely a momentum signal. ### 4. Retail behaviour The number of individual shareholders holding up to ₹2 lakh nominal capital is disclosed. Read it as sentiment: - Retail count exploding while institutions exit = distribution - Retail count falling while MFs accumulate = accumulation - Retail count is also the base for SEBI's minimum-public-shareholding and small-shareholder-director provisions ### 5. Structural constraints - **Minimum public shareholding**: 25% for most listed companies. A promoter at 74–75% has no headroom to buy. A company below MPS is under a compliance clock and will dilute. - **Free float and index eligibility**: index inclusion depends on free-float market cap. A promoter reducing stake can be preparing for index inclusion — a mechanical buyer. - **Concentration**: the >1% shareholder list shows how few holders control the float. A thin float amplifies both directions and makes exit costly. ## Cross-checks Pair every shareholding-pattern conclusion with: - **Bulk and block deal data** from NSE/BSE for the quarter — names the counterparty - **SAST disclosures** (Reg 29) for acquisitions crossing 5% and every subsequent 2% - **PIT disclosures** (Reg 7) for insider trades above ₹10 lakh in a calendar quarter - **AMFI monthly portfolio disclosures** for exact mutual fund positions, which are more granular and more current than the quarterly SHP ## Output format ```markdown # — Ownership, ## Trend | Qtr | Promoter | Pledge (of prom.) | FPI | MF | Ins. | Retail | Retail holders | ## What changed and why - Promoter: <Δ, and reconciled to share count> - Pledge: <Δ and interpretation> - Institutions: ## Structural - Free float: X% (₹Y cr) - MPS headroom: ... - Top holders >1%: ... ## Read <2–4 sentences: what owners did, and whether it agrees with management's story> ``` ## Hard rules - **Reconcile percentages to absolute share counts** before calling anything a sale. Dilution moves percentages without trades. - **Name the quarter and the filing date** for every figure. - Do not infer intent. "Promoter holding fell 2.1% via a block deal on " is a fact; "promoters are losing confidence" is not. - Encumbrance disclosures cover pledges *and* other encumbrances — read both lines.