IKIO Technologies Limited's (NSE:IKIO) most bullish insider, CEO Hardeep Singh must be pleased with the recent 19% gain

Key Insights

• Significant insider control over IKIO Technologies implies vested interests in company growth
• The top 2 shareholders own 70% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

To get a sense of who is truly in control of IKIO Technologies Limited (NSE:IKIO), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 70% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit ₹18b market cap following a 19% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about IKIO Technologies.

Check out our latest analysis for IKIO Technologies

What Does The Institutional Ownership Tell Us About IKIO Technologies?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

IKIO Technologies already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 IKIO Technologies' earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in IKIO Technologies. The company's CEO Hardeep Singh is the largest shareholder with 42% of shares outstanding. For context, the second largest shareholder holds about 29% of the shares outstanding, followed by an ownership of 3.4% by the third-largest shareholder. Interestingly, the second-largest shareholder, Surmeet Kaur is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of IKIO Technologies

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own the majority of IKIO Technologies Limited. This means they can collectively make decisions for the company. So they have a ₹13b stake in this ₹18b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 21% stake in IKIO Technologies. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand IKIO Technologies better, we need to consider many other factors. For instance, we've identified 3 warning signs for IKIO Technologies that you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.