Public companies are Oracle Financial Services Software Limited's (NSE:OFSS) biggest owners and were hit after market cap dropped ₹43b

Key Insights

• Significant control over Oracle Financial Services Software by public companies implies that the general public has more power to influence management and governance-related decisions
• Oracle Corporation owns 73% of the company
• Institutional ownership in Oracle Financial Services Software is 13%

If you want to know who really controls Oracle Financial Services Software Limited (NSE:OFSS), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 73% to be precise, is public companies. 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, public companies as a group endured the highest losses last week after market cap fell by ₹43b.

Let's take a closer look to see what the different types of shareholders can tell us about Oracle Financial Services Software.

Check out our latest analysis for Oracle Financial Services Software

What Does The Institutional Ownership Tell Us About Oracle Financial Services Software?

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.

As you can see, institutional investors have a fair amount of stake in Oracle Financial Services Software. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Oracle Financial Services Software's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Oracle Financial Services Software. Oracle Corporation is currently the company's largest shareholder with 73% of shares outstanding. This implies that they have majority interest control of the future of the company. Kotak Mahindra Asset Management Company Limited is the second largest shareholder owning 2.8% of common stock, and Life Insurance Corporation of India, Asset Management Arm holds about 1.7% of the company stock.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Oracle Financial Services Software

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 Oracle Financial Services Software Limited insiders own under 1% of the company. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own ₹2.5b worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 14% stake in Oracle Financial Services Software. 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.

Public Company Ownership

It appears to us that public companies own 73% of Oracle Financial Services Software. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Oracle Financial Services Software is showing 1 warning sign in our investment analysis , you should know about...

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.