ShareHolding Pattern | Ultratech Cement

Share Holding Pattern

The 59.9% held by promotors of UltraTech are further divided into 0.12% held by Indian individuals and HUFs, 57.27% held by Grasim Industries Limited,1.21% held by Pilani Investment and Industries Corporation Limited and 0.95% held by foreign promotors. Promotor holding between 50-75% works the best for an Indian company; thus, Ultratech's promotors holding almost 60% of company shares is a strong sign of their belief in the prospects of growth for the company. The promotor holding in Ultratech has been almost stable over the years, ranging from 60- 62%. This shows that the company has good future prospects, and promotors believe that the company is on the right way towards continuous growth. This is also a good sign for other investors, as promoters know all the company's internal information. In addition to this, UltraTech also has 0% pledged shares. This is a good sign as pledged shares often signal that the company is not getting debt from the market, and thus, they have to pledge shares in order to get debt. It also poses a risk of promotors losing control of ownership of the company

Foreign institutional investors (FIIs) comprise 18.2% of Ultratech's shareholding. In 2017, FIIs constituted 22.27% of the company's equity, which reduced to 14.03% in 2022 before gradually increasing to 18.2%. The FIIs make up a significant part of the company, which means that there is greater diversity on board; it also opens up the company to greater exposure. FIIs also help better corporate governance and keep promotors in check from making biased decisions. The only potential risk that FIIs pose is that they can completely pull off the company during a crisis, which would cause significant problems for other investors and the entire market.

UltraTech also has domestic institutional investors holding a part of the company's equity. Mutual fund companies, insurance companies like LIC, and banks make up this pie of UltraTech's shareholding pattern. DIIs have increased from 5.51% in 2017 to almost 14% in June 2024. DIIs also help in beƩer corporate governance. 14% and 18% of DIIs and FIIs in the shareholding also signal growth prospects and confidence in the company, and these institutions only invest in the companies they trust to grow in the future consistently

Non-institutional or retail investors comprise the smallest portion of UltraTech's share equity, 7.4%. These investors have a significant impact on market sentiments and are a sign of how the general public is pursuing the company. Retail investors usually invest for their personal benefits of creating value and people investing in Ultratech shows that they trust the company to achieve their goal. This investor group also determines the market price of the company's share and poses a risk of fear selling in times of bad news.