Promoter Pledging: The Red Flag to Check Before You Buy

Promoter pledging means founders borrowed against their own shares — if the stock falls, lenders can dump them

Check the 'shares pledged as % of promoter holding' in every quarterly shareholding pattern on NSE/BSE

A rising pledge trend or pledge above ~25-50% of promoter stake is a serious caution flag

Invocation triggers a forced sale, price crash and possible loss of promoter control

Pledging alone isn't fatal — read it alongside debt, cash flows and why the money was raised