Avanti Feeds Limited's (NSE:AVANTIFEED) largest shareholders are private companies who were rewarded as market cap surged ₹6.7b last week

Key Insights

• The considerable ownership by private companies in Avanti Feeds indicates that they collectively have a greater say in management and business strategy
• The top 2 shareholders own 51% of the company
• Insider ownership in Avanti Feeds is 14%

To get a sense of who is truly in control of Avanti Feeds Limited (NSE:AVANTIFEED), it is important to understand the ownership structure of the business. We can see that private companies own the lion's share in the company with 32% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, private companies benefitted the most after the company's market cap rose by ₹6.7b last week.

Let's delve deeper into each type of owner of Avanti Feeds, beginning with the chart below.

View our latest analysis for Avanti Feeds

What Does The Institutional Ownership Tell Us About Avanti Feeds?

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.

Avanti Feeds 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 Avanti Feeds' earnings history below. Of course, the future is what really matters.

Avanti Feeds is not owned by hedge funds. Srinivasa Cystine Ltd. is currently the largest shareholder, with 27% of shares outstanding. With 24% and 12% of the shares outstanding respectively, Thai Union Group Public Company Limited and Alluri Kumar are the second and third largest shareholders. Alluri Kumar, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

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.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Avanti Feeds

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders maintain a significant holding in Avanti Feeds Limited. Insiders own ₹12b worth of shares in the ₹86b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 18% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Avanti Feeds. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

We can see that Private Companies own 32%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Public Company Ownership

Public companies currently own 24% of Avanti Feeds 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 Avanti Feeds better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Avanti Feeds .

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.