Promoter pledging is an important analytical parameter. When promoters pledge shares, they keep shares as collateral with a financial institution, such as a bank, to raise money. It's just like mortgaging something for money. Later you pay the loan back and get your thing released.

Pledging is not always bad. Many times promoters pledge their stake for sound business reasons and later release their pledged shares. But pledging takes an ugly turn when the pledged stake is high and the promoter is unable to pay back the dues. This may force the financing institution to sell the pledged stake, which can result in a sudden fall in the stock price.

Generally speaking, a high pledged stake also indicates a bad management. Investors should stay away from companies that have high levels of pledging.

The first table below mentions companies in which pledging has gone up by 10 per cent or more in the last quarter and the pledged stake is now at least 25 per cent. The second table mentions companies in which pledging has gone down by at least 10 per cent.