Promoters of NSE-listed companies have raised over ₹7 trillion against their shareholdings as of the June 2026 quarter, according to a Business Standard analysis of data compiled by Prime Database. This represents a dramatic increase from the ₹2 trillion seen before the pandemic in June 2019, with the absolute amount of money raised through both pledged shares and shares under non-disposal undertaking (NDU) being more than three times the pre-pandemic figure. The share of total promoter stake involved has risen from 2.52 per cent in June 2019 to 3.17 per cent as of June 2026.
Indian equity markets are experiencing a sharp surge in secondary share sales after the June quarter earnings season, with total equity supply through block deals crossing ₹30,000 crore in just the last 11 days. According to CNBC TV18, major transactions include ₹1,200 crore from Viyash Scientific (Carlyle), ₹1,400 crore from Welspun Corp (promoters), ₹1,900 crore from Groww (Ribbit Capital), and ₹2,800 crore from Lenskart (SoftBank Vision Fund). Private equity funds have emerged as major sellers, with many early-stage investors using the equity rally to book profits and take partial exits from portfolio companies, while fund managers face pressure from limited fund tenures to return capital to investors.
The increase in borrowing is largely driven by sectors like metals and commodities which are seeing capacity addition, noted Deepak Jasani, independent market expert and former head of research at a bank-based brokerage. Many corporate groups are setting up new companies with capital often coming from their existing listed ventures. UR Bhat, cofounder and director at financial services firm Alphaniti Fintech, pointed out that many conglomerates are starting companies in new sectors which are being financed by borrowings against mature businesses. Borrowing to increase stake incrementally in listed companies is also common, with some promoters resorting to lenders for private purposes, particularly first-generation entrepreneurs facing personal expenses and liquidity requirements.
The number of companies with promoter borrowing against shares has risen from 481 in June 2019 to 491 in June 2026, while the number of listed companies has increased from less than 1,700 to nearly 3,000 over this period. Sectors with high promoter borrowing among top companies include mining, metal, paint and power among others. As reported by Business Standard, promoters are usually the majority owners or those who assert significant control over company functioning, and can raise money from financial institutions against their stake in listed companies, with lenders able to move to dispose of the stake if promoters fail to meet debt obligations.
Despite the increased borrowing, lenders have tightened their approach following significant court orders in recent years. According to Sourasubha Ghosh, partner at CMS IndusLaw, there have been many significant judgments clarifying lender rights in cases of borrowings against pledged shares of companies that later went into insolvency, including PTC India, Anuj Jain and others. Despite the flood of equity supply, demand from institutional and retail investors has remained resilient so far, allowing most transactions to be absorbed without significant disruption. However, market participants will be closely watching whether the pace of stake sales and fund-raising activity continues in the coming weeks and whether investor appetite remains strong enough to absorb the growing pipeline of deals.
