Market Structure
What is Promoter Pledge?
Promoter pledge refers to shares pledged by promoters as collateral for loans, a major red flag in Indian markets as forced selling can trigger stock price crashes.
Formula
Pledge % = Pledged Promoter Shares ÷ Total Promoter Shares × 100
How to Interpret
Any pledge above 0% warrants scrutiny. Above 30% is dangerous. Pledged shares can trigger cascading sell-offs if stock price falls.
Typical Ranges
0% is ideal. Below 10% is tolerable. Above 20% is a red flag.
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter US or Indian stocks by Promoter Pledge.