Vidhi Specialty Food Ingredients Limited's (NSE:VIDHIING) market cap surged ₹2.4b last week, private companies who have a lot riding on the company were rewarded

Key Insights

• Significant control over Vidhi Specialty Food Ingredients by private companies implies that the general public has more power to influence management and governance-related decisions
• The top 3 shareholders own 56% of the company
• Insider ownership in Vidhi Specialty Food Ingredients is 18%

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If you want to know who really controls Vidhi Specialty Food Ingredients Limited (NSE:VIDHIING), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are private companies with 52% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, private companies were the biggest beneficiaries of last week’s 15% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Vidhi Specialty Food Ingredients.

View our latest analysis for Vidhi Specialty Food Ingredients

What Does The Lack Of Institutional Ownership Tell Us About Vidhi Specialty Food Ingredients?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Vidhi Specialty Food Ingredients' earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

Vidhi Specialty Food Ingredients is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Pravina manek family private trust with 26% of shares outstanding. For context, the second largest shareholder holds about 23% of the shares outstanding, followed by an ownership of 7.0% by the third-largest shareholder. Pravina Manek, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. Furthermore, CEO Bipin Manek is the owner of 5.2% of the company's shares.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 56% stake.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Vidhi Specialty Food Ingredients

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. 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.

Our information suggests that insiders maintain a significant holding in Vidhi Specialty Food Ingredients Limited. It has a market capitalization of just ₹19b, and insiders have ₹3.3b worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 30% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Vidhi Specialty Food Ingredients. 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

Our data indicates that Private Companies hold 52%, of the company's shares. 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.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 2 warning signs for Vidhi Specialty Food Ingredients you should be aware of, and 1 of them is concerning.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.