The recession started in October after reaching record high of major indices of the Indian stock market in late September 2024.
The recession was at its peak in the first week of March, when the mid-cap and small-cap index fell by 22 to 25 percent from its record high levels and entered the recession. Although in the last week of March, these indices have risen after heavy purchases by FIIs, but currently they are about 15 percent below their record high levels. However, the decline in midcap and smallcap shares has increased the problems of promoters of some companies in this category and there are reports that lenders have seized some of their mortgaged shares, as they have failed to repay the loan taken by mortgaging the company shares.
In this way, the details of seizing shares of about 15 smallcap companies have been available. The current market capitalization of fifteen companies whose shares have been seized in this way. 5 crores to Rs. The share prices of these companies have fallen from 4.41% to 190% since October 1, Rs 1,500 crore and since October 1.
In the first six months of 2024–25, the number of companies whose promoter shares were seized by lenders in this manner were 52, which increased to about 100 in the period from October 2024 to March 2025. However, this figure is not as worrying as a total of 342 companies mortgaged as collateral during the period from April to September 2022.
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