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    Promoters raising stakes in companies; should you buy, too?

    Synopsis

    The promoters of these businesses have bought shares in their own firms from the open market.

    Stock-picking-2---iStockiStock
    Alembic, SH Kelkar and Marico also feature in the list of top stocks in which their promoters have increased ownership after trading windows opened for them.
    Mumbai: If you have lately bought the stock of Godrej Industries, Adani Ports, Apollo Tyres or IndusInd Bank, you are in august company. The promoters of these well-known businesses have bought shares in their own firms from the open market after trading curbs were eased for key management personnel, indicating that you acted prudently while giving those buy orders to your broker.

    Alembic, SH Kelkar and Marico also feature in the list of top stocks in which their promoters have increased ownership after trading windows opened for them, underscoring the value the primary owners see in these businesses.

    “If the promoters are increasing their own stake in a tough business environment, it just shows that they are committed to their own business and see this fall as an aberration, and use it to increase their stake,” said Arjun Yash Mahajan, head - institutional business, Reliance Securities. “The availability of easy and cheap liquidity in the overseas markets may have given some promoters the opportunity to increase their stake in their companies.”

    The Godrej family-owned Godrej Seeds & Genetics bought 4.76 million shares worth Rs 145 crore of Godrej Industries between May 27 and June 3, exchange data showed. Godrej Industries, which fell from Rs 420 on February 10 to Rs 250 on May 20, has recovered 54% since then.

    Similarly, the Adani Group has acquired 3.517 million shares of Adani Ports during May 21-29.

    Promoters Raising Stakes in Cos; Should You Buy, Too?




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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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