Promoters cut stake in 48 companies in Q1; Reliance, M&M, Bharti Airtel among key names

Promoters of 48 companies from the NIFTY 500 index have been consistently lowering their holdings in their companies since the last four quarters, data compiled by Ace Equity showed.

These include bluechip companies like Reliance Industries, Mahindra & Mahindra, Wipro, Bharti Airtel, Wipro and Eicher Motors.

Reliance Industries, the country's most valuable company backed by billionaire Mukesh Ambani, saw its promoter shareholding decrease marginally to 50.07% at the end of the June quarter, as against 50.11% in the previous quarter. The promoters held a 50.33% stake in the company in the first quarter of the previous financial year.

Mahindra & Mahindra, maker of popular cars like Thar and XUV 700, saw its promoter holding reduce to 18.44% at the end of June quarter as against 18.45% at the end of March quarter.The Anand Mahindra-backed company's promoter holding at the end of first quarter of financial year 2024-25 stood at 18.56%.

Similarly, Sunil Bharti Mittal-backed Bharti Airtel has also seen its promoter holding decline consistently in the last four quarters. Bharti Airtel's promoters reduced their stake in the company to 51.25% at the end of the June quarter from 53.17% in the same quarter last year.

Leading IT firm Wipro also saw its promoters reduce their stake to 72.66% at the end of first quarter of the current financial year from 72.82% in the year-ago period.

A reduction in promoter shareholding can stem from a variety of factors and isn’t necessarily a sign of trouble. While it might raise questions about the promoter’s confidence in the company’s future, it’s important to consider other possibilities, said Kunal Harsh, an independent market analyst.

Promoters may dilute their holdings as part of long-term financial planning, to diversify their investment portfolio or to raise capital for new business ventures or personal commitments. In some cases, regulatory or restructuring requirements may also necessitate stake changes. Therefore, such moves should be viewed in context rather than being interpreted as inherently negative, Harsh added.

From the banking space, Axis Bank's promoters have also been selling their stake. The promoters held 8.17% stake in the bank at the end of Q1FY26 as against 8.31% in the same period last year.

IndusInd Bank saw its promoters reduce stake in the bank to 15.82% from 16.38% in the same period last year. The private lender faced corporate governance issues in the first quarter after its MD and CEO Sumant Kathpalia stepped down from his post following lapses in the bank’s derivatives account portfolio.

Similarly, 360 One WAM and HFCL saw their promoters drastically reduce their stakes in their respective companies. 360 One WAM's promoter holding at the end of June quarter fell to 6.27% from 14.20% in the previous quarter and from 15.79% at the end of the first quarter last year.

Meanwhile, HFCL also saw its promoter holding reduce to 31.58% at the end of June quarter from 34.37% in the previous quarter and 37.63% in the first quarter of the last financial year.