How many shares of RattanIndia Power Limited (NSE: RTNPOWER) do institutions own?

Every investor in RattanIndia Power Limited (NSE: RTNPOWER) should know the most powerful shareholder groups. Insiders often own a large portion of younger and smaller companies, while larger companies tend to have institutions as shareholders. Companies that were previously state-owned tend to have fewer insiders.

RattanIndia Power is not a big company by global standards. It has a market cap of 29 billion yen, which means it wouldn’t get the attention of many institutional investors. In the graph below, we can see that the institutions hold shares in the company. Let’s take a closer look at what different types of shareholders can tell us about RattanIndia Power.

Check out our latest review for RattanIndia Power

Distribution of NSEI property: RTNPOWER June 19, 2021

What does institutional ownership tell us about RattanIndia Power?

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

As you can see, institutional investors own a large stake in RattanIndia Power. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better not to rely on the so-called validation that accompanies institutional investors. They too are sometimes wrong. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company without a history of growth. You can see RattanIndia Power’s historical revenue and revenue below, but keep in mind that there is always more to tell.

profit and revenue growth
NSEI: RTNPOWER Profits and Revenue Growth Jun 19, 2021

RattanIndia Power is not owned by hedge funds. RR Infralands Private Limited is currently the largest shareholder of the company with 22% of the shares outstanding. In comparison, the second and third shareholders hold around 22% and 15% of the capital.

To make our study more interesting, we found that the top 3 shareholders have a controlling stake in the company, which means that they are powerful enough to influence the decisions of the company.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. Our information suggests there is no analyst coverage of the stock, so it is likely little known.

Insider property of RottanIndia Power

The definition of an insider may differ slightly from country to country, but board members still count. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own less than 1% of RattanIndia Power Limited. We note, however, that it is possible that insiders may have an indirect interest through a private company or other corporate structure. It has a market capitalization of only 29 billion yen and the board of directors has only 200,000 yen of shares in its name. Many small business investors prefer to see the board of directors more heavily invested. You can click here to see if these insiders have bought or sold.

General public property

With a 20% stake, the general public has some influence over RattanIndia Power. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.

Owned by a private company

It appears that private companies own 22% of the shares of RattanIndia Power. It is difficult to draw conclusions from this fact alone, so it is worth considering who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

Public enterprise ownership

It seems to us that state-owned companies own 26% of RattanIndia Power. It may be a strategic interest and the two companies may have related business interests. It could be that they defused. This exploitation probably deserves to be deepened.

Next steps:

I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well. Take risks for example – RattanIndia Power has 4 warning signs (and 2 which are a bit rude) that we think we need to know about.

Of course this might not be the best stock to buy. Therefore, you may want to see our free set of interesting prospects benefiting from a favorable financial situation.

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

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.
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