Indian Oil Corporation Limited (NSE:IOC) stock most popular amongst state or government who own 53%, while public companies hold 20%

Key Insights

• The considerable ownership by state or government in Indian Oil indicates that they collectively have a greater say in management and business strategy
• 53% of the company is held by a single shareholder (India)
• Institutional ownership in Indian Oil is 13%

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If you want to know who really controls Indian Oil Corporation Limited (NSE:IOC), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 53% to be precise, is state or government. Put another way, the group faces the maximum upside potential (or downside risk).

And public companies on the other hand have a 20% ownership in the company.

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

Check out our latest analysis for Indian Oil

What Does The Institutional Ownership Tell Us About Indian Oil?

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.

Indian Oil already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Indian Oil's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Indian Oil. Looking at our data, we can see that the largest shareholder is India with 53% of shares outstanding. This implies that they have majority interest control of the future of the company. In comparison, the second and third largest shareholders hold about 15% and 6.6% of the stock.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Indian Oil

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 information suggests that Indian Oil Corporation Limited insiders own under 1% of the company. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own ₹13m worth of shares (at current prices). Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 12% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

Public companies currently own 20% of Indian Oil stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Indian Oil better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Indian Oil (including 1 which doesn't sit too well with us) .

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.