Private companies are V2 Retail Limited's (NSE:V2RETAIL) biggest owners and were hit after market cap dropped ₹4.4b

Key Insights

• Significant control over V2 Retail by private companies implies that the general public has more power to influence management and governance-related decisions
• 53% of the business is held by the top 4 shareholders
• Insiders own 17% of V2 Retail

A look at the shareholders of V2 Retail Limited (NSE:V2RETAIL) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private companies with 43% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, private companies as a group endured the highest losses last week after market cap fell by ₹4.4b.

Let's delve deeper into each type of owner of V2 Retail, beginning with the chart below.

View our latest analysis for V2 Retail

What Does The Institutional Ownership Tell Us About V2 Retail?

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.

V2 Retail already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 V2 Retail, (below). Of course, keep in mind that there are other factors to consider, too.

V2 Retail is not owned by hedge funds. The company's largest shareholder is Ricon Commodities Private Limited, with ownership of 37%. Meanwhile, the second and third largest shareholders, hold 5.9% and 5.1%, of the shares outstanding, respectively. Ram Agarwal, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. Additionally, the company's CEO Manshu Tandon directly holds 1.0% of the total shares outstanding.

On looking further, we found that 53% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of 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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of V2 Retail

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.

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 V2 Retail Limited. Insiders own ₹9.2b worth of shares in the ₹53b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 30% ownership, the general public, mostly comprising of individual investors, have some degree of sway over V2 Retail. 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

We can see that Private Companies own 43%, 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand V2 Retail better, we need to consider many other factors. For instance, we've identified 1 warning sign for V2 Retail that you should be aware of.

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.