Confidence unleashed! Promoters raised their stake in over 100 small-cap companies in Q3

Promoters upped their stakes in more than 100 small-cap companies in the December quarter, signalling a renewed confidence in the growth potential of their enterprises. Initial shareholding data showed that promoters have increased their stake in Wardwizard Healthcare the most to 74.08 per cent in Q3FY24 from 14.08 per cent in the preceding quarter. Justride Enterprises, Thambbi Modern Spinning Mills and Orchasp followed it. Promoters raised their stake by more than 10 percentage points in these firms.

In general, when a promoter chooses to increase their stake in a company, it often conveys specific messages. Firstly, it serves as a positive indication that the promoter perceives value in the company at its current levels. Secondly, it may reflect optimistic developments within the business. Lastly, low stakes are sometimes being increased by promoters to prevent hostile acquisitions. These actions collectively underscore the promoter’s confidence in the company’s prospects and their commitment to safeguarding its interests.

Overall, there are at least 20 companies in which promoters raised their stake by more than 1 percentage point. Some of the players in the list include Tide Water Oil Company (India) in which promoters increased their holdings to 62.27 per cent from 57.28 per cent, Kapil Cotel to 62.71 per cent from 57.79 per cent, Sampann Utpadan India to 40.50 per cent from 35.60 per cent.

With over 1 percentage point increase, IMEC Services, Yaan Enterprises, Nikki Global Finance, Smart Finsec, Upsurge Investment & Finance, Capacit’e Infraprojects, Salzer Electronics, Kerala Ayurveda, Shriram Asset Management Company, 21st Century Management Services, Snowman Logistics, Adroit Infotech and Gokul Refoils and Solvent stood among other major favourites of promoters for the quarter ended December 31.

Quint Digital, AMI Organics, LKP Securities, Kumbhat Financial Services, Zydus Wellness, KJMC Financial Services, Apollo Micro Systems, The Motor & General Finance, Vijay Solvex and Sagarsoft (India) also witnessed somewhere between 0.50-1 percentage point increase in promoters holding during the quarter under review. 

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