Shareholding Structure

Shareholding Structure refers to the distribution of ownership in a company and shows how the company’s shares are divided among different categories of shareholders. This structure is usually set out in an IPO prospectus or company documents and provides important information about who owns the company and the proportion of shares each group holds.

The structure shows how much of the company's equity (shares) is owned by different stakeholder groups, including institutional investors, retail investors, corporate insiders and others.

Types of Shareholders

• Promoters: Individuals who founded the company or have significant influence and often retain a significant shareholding even after an IPO.
• Institutional investors: Large companies such as investment funds, pension funds and hedge funds usually acquire large stakes.
• Retail investors: Individual investors who buy shares through public offerings or secondary markets, usually in smaller amounts.
• Employees: Some of them may own shares, often through stock options or employee stock ownership plans (ESOPs).

Pre-IPO vs. Post-IPO

• Pre-IPO Shareholders: Owners before the company goes public (founders, early investors, employees with stock options).
• Post-IPO Shareholders: Owners after the company goes public, including new shareholders who purchase shares in the IPO or on the secondary market.