private companies who own 52% along with institutions invested in Jubilant Ingrevia Limited (NSE:JUBLINGREA) saw increase in their holdings value last week

Simply Wall St · 10/17 00:18

Key Insights

  • The considerable ownership by private companies in Jubilant Ingrevia indicates that they collectively have a greater say in management and business strategy
  • The top 4 shareholders own 56% of the company
  • Institutions own 29% of Jubilant Ingrevia

If you want to know who really controls Jubilant Ingrevia Limited (NSE:JUBLINGREA), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 52% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk).

Private companies gained the most after market cap touched ₹123b last week, while institutions who own 29% also benefitted.

In the chart below, we zoom in on the different ownership groups of Jubilant Ingrevia.

Check out our latest analysis for Jubilant Ingrevia

ownership-breakdown
NSEI:JUBLINGREA Ownership Breakdown October 17th 2024

What Does The Institutional Ownership Tell Us About Jubilant Ingrevia?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Jubilant Ingrevia. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Jubilant Ingrevia's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NSEI:JUBLINGREA Earnings and Revenue Growth October 17th 2024

Jubilant Ingrevia is not owned by hedge funds. Our data shows that Shyam Sunder Bhartia Family Trust is the largest shareholder with 21% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 19% and 9.6%, of the shares outstanding, respectively.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Jubilant Ingrevia

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Shareholders would probably be interested to learn that insiders own shares in Jubilant Ingrevia Limited. The insiders have a meaningful stake worth ₹5.2b. Most would see this as a real positive. If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 12% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

We can see that Private Companies own 52%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Jubilant Ingrevia , and understanding them should be part of your investment process.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.