Insider alert: Top 5 companies in which promoters are increasing their stake

livemint.com:

promoters buy shares in their own company, investors consider it positive. Promoter buying usually indicates that the company may be undervalued or that promoters know something big is going to happen, so they lap up shares beforehand. It means that the promoters, who built the company from the ground up, are once again putting their money on the line.

It’s a huge vote of confidence! Indian regulations allow promoters to buy up to 5% of their company's shares annually through the open market. In 2023, promoters across 100 companies went on a buying spree, investing a whopping $450 billion (bn). Here’s the truly exciting part! In at least 20 companies, promoters increased their share by over 1%.

This is a significant chunk, showing a deep commitment to the company's growth potential. Promoters are leaving no stone unturned. The current fall in the Indian stock market is one such example.

Seeing the opportunity in the beaten-down share prices, BSE data shows that these promoters bought shares from the open market. With most of the companies having reported their December 2023 shareholding pattern, let’s look at the top 5 stocks which saw the maximum promoter buying. In fact, these companies have now seen their promoter holding go up for the past 4 consecutive quarters.

⦁ Lakshmi Automation Loom Works Founded in 1973, the company manufactures spares and accessories for weaving and knitting machines. As the need for sophisticated and high-end weaving machines grew, the company expanded its portfolio to high-speed automatic C-type weaving machines, air-jet weaving machines, circular knitting machines, and more. Apart from that, the company also provides warehousing rental and engineering services.