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Friday, April 21, 2017

MEET THE PROMOTERS WHO TURNED BILLIONAIRES IN THE MIDCAP RALLY IN INDIAN STOCK MARKETS

By  Amit Mudgil lETMarkets.com Updated: Apr 18, 2017, 12.14 PM IST


NEW DELHI: A 76 per cent rally in the midcap stocks this year, and up to 440 per cent surge since May 2014, have made promoters of many midcap firms richer, with data suggesting that promoter entities of 74 of the 85 BSE Midcap index companies now hold shares worth $1 billion or more. 
With a strong rally in the midcap stocks since May 2014, market-caps of many of these BSE midcap index stocks have crossed the Rs 50,000 crore mark.

The list includes Sun TV’s Kalanithi Maran, 
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Biocon’s Kiran Mazumdar Shaw,
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Oberoi Realty’s Vikas Ranvir Oberoi 
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and Adani Group’s Gautam Adani, whose personal holdings in their listed entities exceed $ one billion
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Latest shareholding data available with the stock exchanges shows promoter entities held in excess of 50 per cent in 65 of these 85 midcap firms as of March 31, 2017. 


With a strong rally in the midcap stocks since May 2014, market-caps of many of these BSE midcap index stocks have crossed the Rs 50,000 crore mark, thereby technically getting elevated as largecaps, though they remain part of the midcap index. 


Among these companies, Bajaj Finserv  (Rs 42,778 crore), HPCL (Rs 29,029 crore), Bharat Electron (Rs 25,908 crore), Oracle Financial Services(23,627 crore) and Marico (Rs 23,204 crore) are some of the BSE Midcap index companies with highest promoter holdings in value terms. Marico, ABB, SAIL and JSW Steel  also have promoter holdings in excess of $1 billion. 


Shares of Bajaj Finserv have rallied 440 per cent since May 2014. HPCL has seen its stock soar 318 per cent during the same period. Shares of Bharat Electron and Piramal Enterprises have risen up to 215 per cent in the same period. 

Among companies where promoters have big stakes in their personal capacity, Kalanithi Maran’s 29.55 crore holding in Sun TV is worth Rs 23,111 crore. Maran held 75 per cent stake in the media firm as of December 31. 


Kiran Mazumdar Shaw has 39.64 per cent stake in drugmaker Biocon, which is worth Rs 8,700 crore. Vikas Ranvir Oberoi of Oberoi Realty owned 62.7 per cent stake in the realty firm as of March 31, which is worth 7,849 crore. Gautam Adani’s 56.48 per cent stake in Adani Enterprises was worth Rs 7,245 crore as of March 31, 2017. 




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