The Stock Stethoscope

Shareholding pattern refers to the ownership structure of a company, indicating how its ownership is distributed among different shareholders or categories of shareholders. It provides important information about the company’s ownership, control, and governance. The following are the main components of a shareholding pattern:

Promoter shareholding:

This refers to the percentage of shares held by the promoters of the company. Promoters are individuals or entities that have founded or promoted the company and have a significant stake in the company’s equity. Their shareholding is usually the highest in the company.

Institutional shareholding:

This refers to the percentage of shares held by institutions such as banks, insurance companies, mutual funds, foreign institutional investors (FII), and other investment firms. Institutional investors are important stakeholders in a company and their shareholding indicates their confidence in the company’s future prospects.

Public shareholding:

This refers to the percentage of shares held by the general public, including retail investors, high net worth individuals, and others. The public shareholding also includes shares held by employee trusts and other public trusts.

Government shareholding:

This refers to the percentage of shares held by the government in a public sector company or a company in which the government has a stake. In India, for example, the government may hold a strategic stake in certain companies such as oil companies or defense-related firms.

Non-promoter shareholding:

This refers to the shareholding of all shareholders other than the promoters of the company, including institutional investors, public shareholders, and others. It is calculated as the total shareholding minus the promoter shareholding.

In addition to the above, shareholding patterns may also be divided into categories such as individual shareholding, foreign shareholding, and others, depending on the type of shareholder.