Rising interest rates may affect these 10 firms with high promoter pledging, debt to equity ratio
Pledging of shares is like a double-edged sword. In a slowing economy or a bear market, the pledging could create havoc with promoters' cash flows. Historically, during economic slowdown, earnings of companies tend to decrease due to a fall in the aggregate demand. During the period of rising interest rates, cost of debt for the firms increases significantly and this scenario could create problems for the companies with high debt. Here are 10 companies based on high promoter pledging and hi...
Source: businesstoday.in