Rajratan Global Wire Limited's (NSE:RAJRATAN) largest shareholders are private companies who were rewarded as market cap surged ₹1.8b last week

Key Insights

• Significant control over Rajratan Global Wire by private companies implies that the general public has more power to influence management and governance-related decisions
• The top 4 shareholders own 52% of the company
• Insider ownership in Rajratan Global Wire is 18%

We've discovered 2 warning signs about Rajratan Global Wire. View them for free.

To get a sense of who is truly in control of Rajratan Global Wire Limited (NSE:RAJRATAN), it is important to understand the ownership structure of the business. With 52% stake, private companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, private companies benefitted the most after the company's market cap rose by ₹1.8b last week.

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

View our latest analysis for Rajratan Global Wire

What Does The Institutional Ownership Tell Us About Rajratan Global Wire?

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.

We can see that Rajratan Global Wire does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Rajratan Global Wire, (below). Of course, keep in mind that there are other factors to consider, too.

Rajratan Global Wire is not owned by hedge funds. Rajratan Investments Ltd is currently the company's largest shareholder with 18% of shares outstanding. In comparison, the second and third largest shareholders hold about 13% and 11% of the stock. Furthermore, CEO Yashovardhan Chordia is the owner of 4.4% of the company's shares.

Our research also brought to light the fact that roughly 52% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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 Rajratan Global Wire

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.

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 insiders own a significant proportion of Rajratan Global Wire Limited. Insiders own ₹2.9b worth of shares in the ₹16b company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 22% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Rajratan Global Wire. 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.

Private Company Ownership

It seems that Private Companies own 52%, of the Rajratan Global Wire stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Rajratan Global Wire better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Rajratan Global Wire (including 1 which is concerning) .

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.