WEBULL

Arman Financial Services Limited's (NSE:ARMANFIN) market cap up ₹1.6b last week, benefiting both retail investors who own 46% as well as insiders

Simply Wall St · 2d ago

Key Insights

  • Significant control over Arman Financial Services by retail investors implies that the general public has more power to influence management and governance-related decisions
  • A total of 14 investors have a majority stake in the company with 51% ownership
  • Insiders own 21% of Arman Financial Services

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Every investor in Arman Financial Services Limited (NSE:ARMANFIN) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 46% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While retail investors were the group that reaped the most benefits after last week’s 10% price gain, insiders also received a 21% cut.

In the chart below, we zoom in on the different ownership groups of Arman Financial Services.

See our latest analysis for Arman Financial Services

ownership-breakdown
NSEI:ARMANFIN Ownership Breakdown December 18th 2025

What Does The Institutional Ownership Tell Us About Arman Financial Services?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Arman Financial Services already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Arman Financial Services' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NSEI:ARMANFIN Earnings and Revenue Growth December 18th 2025

Arman Financial Services is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Elevation Capital with 11% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 9.0% and 6.3%, of the shares outstanding, respectively. Jayendrabhai Patel, who is the third-largest shareholder, also happens to hold the title of Vice Chairman.

Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 14 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Arman Financial Services

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders maintain a significant holding in Arman Financial Services Limited. Insiders have a ₹3.5b stake in this ₹17b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 46% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Arman Financial Services. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Equity Ownership

Private equity firms hold a 11% stake in Arman Financial Services. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

It seems that Private Companies own 10%, of the Arman Financial Services stock. 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. For example, we've discovered 1 warning sign for Arman Financial Services that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.