If you want to know who really controls ICICI Bank Limited (NSE:ICICIBANK), you have to look at the appearance of its share register. Institutions hold the largest stake in the company with a 73% stake. In other words, the group stands to lose the most (or most) from their investment in the company.
Because institutions have access to large amounts of capital, their market activities tend to receive a lot of scrutiny from retail or individual investors. Hence, a good portion of the institutional money invested in the company has great confidence in its future.
In the table below, Zoom into different asset groups of ICICI Bank.
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What does Institutional Ownership tell us about ICICI Bank?
Many institutions measure their performance against an index that approximates the local market. Therefore, they tend to focus more on companies included in major indexes.
ICICI Bank already has entities in the share register. In fact, They own a respectable stake in the company. This means that analysts working for those organizations look at the stock and they like it. But like everyone else, they can be wrong. It’s not uncommon to see large share price drops if two institutional investors try to sell out of a share at the same time. So you should check the past earnings trend of ICICI Bank. (below). I am sure, Remember that there are other factors to consider.
Institutional investors own more than half of the issued stock, so the board will have to focus on their priorities. The hedge fund does not have much stake in ICICI Bank. According to our data, the largest shareholder is Life Insurance Corporation of India; We can see that it is the asset management arm and comprises 6.7% of the portfolio. SBI Funds Management Limited is the second largest shareholder owning 5.3% of the common stock, while Temasek Holdings (Private) Limited owns approximately 3.7% of the company’s stock.
A closer look at our ownership figures indicates that none of the top 25 shareholders hold a majority, with 50% holding 50% of the shares.
While studying institutional ownership for a company can add value to your research, it’s also good practice to research analyst recommendations to better understand a stock’s expected performance. Although there is some analyst coverage, the company is not widely covered. So you can focus more on the track.
Insider ownership of ICICI Bank
The exact definition of an insider can be subjective, but almost everyone considers board members to be insiders. Company management answers to the board and should subsequently represent the interests of shareholders. Notably, top managers sometimes join the board themselves.
In general, I think insider ownership is a good thing. However, it makes it more difficult for other shareholders to hold the board accountable for decisions at certain times.
Our data suggests that insiders own less than 1% of ICICI Bank Limited in their own names. It is a very large company, so it is surprising to see that insiders own such a large proportion of the company. We can see that the board members own ₹12b worth of shares (at current prices) even though their holdings amount to less than 1%. In this case, It’s more interesting to see if insiders are buying or selling.
The general public — including retail investors — owns a 26% stake in the company and cannot be easily ignored. While this team doesn’t necessarily call the shots, it does. This can have a real influence on how the company is run.
It’s very interesting to see who exactly owns a company. But to really gain insight, we need to consider other facts as well. You should be careful about that. Warning sign 1 Met with ICICI Bank.
You’re just like me. Will this company grow? You may want to consider whether it will shrink. Fortunately, You can check out this free report that shows analyst predictions for its future.
NB: The figures in this article are calculated using data from the last twelve months, which refers to the 12-month period ending on the last day of the month in which the financial statements are dated. It may not match the full year’s annual report figures.
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This article by Simply Wall St is general in nature. We use an unbiased and unbiased methodology and comment based only on historical data and analyst estimates, and our articles are not intended to provide financial advice. It does not constitute a recommendation to buy or sell any stock, and your objectives, or your financial circumstances are not taken into account. We aim to bring you long-term focus analysis driven by fundamental data. Note that our analysis does not include the latest price-sensitive company announcements or quality items. Simply put, there are no positions in stocks listed on Wall St.