What Kind Of Shareholders Hold The Majority In Indiabulls Real Estate Limited's (NSE:IBREALEST) Shares?

If you want to know who really controls Indiabulls Real Estate Limited (NSE:IBREALEST), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

Indiabulls Real Estate is a smaller company with a market capitalization of ₹34b, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Indiabulls Real Estate.

Check out our latest analysis for Indiabulls Real Estate

What Does The Institutional Ownership Tell Us About Indiabulls Real Estate?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Indiabulls Real Estate 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. 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 Indiabulls Real Estate, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Indiabulls Real Estate. Our data shows that Embassy Property Developments Private Limited is the largest shareholder with 14% of shares outstanding. Sg Infralands Private Limited is the second largest shareholder owning 9.6% of common stock, and SG Devbuild Private Limited holds about 5.5% of the company stock.

After doing some more digging, we found that the top 12 have the combined ownership of 52% in the company, suggesting that no single shareholder has significant control over the company.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Indiabulls Real Estate

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. 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.

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 most recent data indicates that insiders own some shares in Indiabulls Real Estate Limited. In their own names, insiders own ₹3.3b worth of stock in the ₹34b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public holds a 25% stake in Indiabulls Real Estate. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 42%, of the Indiabulls Real Estate stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Indiabulls Real Estate better, we need to consider many other factors. For example, we've discovered 4 warning signs for Indiabulls Real Estate (2 can't be ignored!) that you should be aware of before investing here.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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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