With a 54% stake, IndiaMART InterMESH Limited (NSE:INDIAMART) insiders have a lot riding on the company

Key Insights

• IndiaMART InterMESH's significant insider ownership suggests inherent interests in company's expansion
• A total of 3 investors have a majority stake in the company with 57% ownership
• Institutional ownership in IndiaMART InterMESH is 30%

Every investor in IndiaMART InterMESH Limited (NSE:INDIAMART) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 54% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

So it follows, every decision made by insiders of IndiaMART InterMESH regarding the company's future would be crucial to them.

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

View our latest analysis for IndiaMART InterMESH

What Does The Institutional Ownership Tell Us About IndiaMART InterMESH?

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 IndiaMART InterMESH. 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 IndiaMART InterMESH's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in IndiaMART InterMESH. Looking at our data, we can see that the largest shareholder is the CEO Dinesh Agarwal with 29% of shares outstanding. With 20% and 7.8% of the shares outstanding respectively, Brijesh Agrawal and Arisaig Partners (Asia) Pte Ltd. are the second and third largest shareholders. Interestingly, the second-largest shareholder, Brijesh Agrawal is also Top Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of IndiaMART InterMESH

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems that insiders own more than half the IndiaMART InterMESH Limited stock. This gives them a lot of power. Insiders own ₹81b worth of shares in the ₹150b company. That's extraordinary! Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over IndiaMART InterMESH. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - IndiaMART InterMESH has 1 warning sign we think you should be aware of.

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.

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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.