Every investor in Vasa Retail and Overseas Limited (NSE:VASA) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Warren Buffett said that he likes ‘a business with enduring competitive advantages that is run by able and owner-oriented people’. So it’s nice to see some insider ownership, because it may suggest that management is owner-oriented.

Vasa Retail and Overseas is not a large company by global standards. It has a market capitalization of ₹162m, which means it wouldn’t have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have not yet purchased much of the company. Let’s delve deeper into each type of owner, to discover more about VASA.

Check out our latest analysis for Vasa Retail and Overseas

What Does The Lack Of Institutional Ownership Tell Us About Vasa Retail and Overseas?

Small companies that are not very actively traded often lack institutional investors, but it’s less common to see large companies without them.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. It is also possible that fund managers don’t own the stock because they aren’t convinced it will perform well. Vasa Retail and Overseas might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Hedge funds don’t have many shares in Vasa Retail and Overseas. We’re not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Vasa Retail and Overseas

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems that insiders own more than half the Vasa Retail and Overseas Limited stock. This gives them a lot of power. That means they own ₹128m worth of shares in the ₹162m company. That’s quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.