#DDT impact only on promoters and #hnis in monetary terms is not large but the signaling and sentiment impact is larger. A quick short thread on listed #equities ( will add more actual data instead of ballpark nos ).
1) total market cap of indian stocks = 150-160 lakh crores. Exact no as per bse market 153,04,724 crores. 2) 10% of that #marketcap is #PSU companies. Most of these companies at 5% yield or more 3) The dividend yield of #nifty500 has been in a range of 1-2% again #psus majorly
4) Consider 10% of the total market cap of india doesnt pay much dividends. 5) Left with a market cap of 120 lakh crores and 1% yield. 6) total dividends given a year say 1.2 lakh crores. 7) Out of this 50-60% of holding is with promoters rest 30% with foreign and domestic insti
8) The dividends in hand of institutions is not impacted but rather positively impacted, the major hit is on the 10% holding by individual investors and 50-60% by promoters 9) If #promoter holding is through #pvtltd, #foreignentity , #trust , #holdingcos it is not in 42.7% tax
10) consider half of #promoter is through above structure. Now left with 20-30% of promoter and 10% of individuals. Around 30-40% of the 1.2 lakh crore div kitty impacted no is approx 50000 cr and and extra tax on it. For a shareholder friendly promoter buyback is better again
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