Who Owns Most Of Prolife Industries Limited (NSE:PROLIFE)?

Today, I will be analyzing Prolife Industries Limited’s (NSEI:PROLIFE) recent ownership structure, an important but not-so-popular subject among individual investors. The impact of a company’s ownership structure affects both its short- and long-term performance. Since the effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company’s corporate governance and accountability of shareholders, investors should take a closer look at PROLIFE’s shareholder registry. All data provided is as of the most recent financial year end.

View our latest analysis for Prolife Industries

NSEI:PROLIFE Ownership_summary Jan 16th 18
NSEI:PROLIFE Ownership_summary Jan 16th 18

Insider Ownership

Another important group of shareholders are company insiders. Insider ownership has to do more with how the company is managed and less to do with the direct impact of the magnitude of shares trading on the market. 72.84% ownership of PROLIFE insiders is large enough to make an impact on shareholder returns. In general, this level of insider ownership has negatively affected underperforming (consistently low PE ratio) companies and positively affected the companies that outperform (consistently high PE ratio). It’s also interesting to learn what PROLIFE insiders have been doing with their shareholdings lately. While insider buying is possibly a sign of a positive outlook for the company, selling doesn’t necessarily indicate a negative outlook as they may be selling to meet personal financial needs.

General Public Ownership

A big stake of 27.11% in PROLIFE is held by the general public. This size of ownership gives retail investors collective power in deciding on major policy decisions such as executive compensation, appointment of directors and acquisitions of businesses. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions. This is a positive sign for an investor who wants to be involved in key decision-making of the company.

Private Company Ownership

Another important group of owners for potential investors in PROLIFE are private companies that hold a stake of 0.05% in PROLIFE. These are companies that are mainly invested due to their strategic interests or are incentivized by reaping capital gains on investments their shareholdings. However, an ownership of this size may be relatively insignificant, meaning that these shareholders may not have the potential to influence PROLIFE’s business strategy. Thus, investors not need worry too much about the consequences of these holdings.