public companies who own 49% along with institutions invested in Aditya Birla Sun Life AMC Limited (NSE:ABSLAMC) saw increase in their holdings value last week

Key Insights

• The considerable ownership by public companies in Aditya Birla Sun Life AMC indicates that they collectively have a greater say in management and business strategy
• 75% of the business is held by the top 2 shareholders
• Institutional ownership in Aditya Birla Sun Life AMC is 41%

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To get a sense of who is truly in control of Aditya Birla Sun Life AMC Limited (NSE:ABSLAMC), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are public companies with 49% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While public companies were the group that reaped the most benefits after last week’s 8.0% price gain, institutions also received a 41% cut.

Let's delve deeper into each type of owner of Aditya Birla Sun Life AMC, beginning with the chart below.

See our latest analysis for Aditya Birla Sun Life AMC

What Does The Institutional Ownership Tell Us About Aditya Birla Sun Life AMC?

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.

We can see that Aditya Birla Sun Life AMC does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Aditya Birla Sun Life AMC, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Aditya Birla Sun Life AMC. Grasim Industries Limited is currently the largest shareholder, with 45% of shares outstanding. In comparison, the second and third largest shareholders hold about 30% and 3.6% of the stock.

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 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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Aditya Birla Sun Life AMC

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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 data suggests that insiders own under 1% of Aditya Birla Sun Life AMC Limited in their own names. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around ₹204k worth of shares (at current prices). It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 11% stake in Aditya Birla Sun Life AMC. 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.

Public Company Ownership

Public companies currently own 49% of Aditya Birla Sun Life AMC stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Aditya Birla Sun Life AMC better, we need to consider many other factors.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.