Could the reason be because the promoter group holds 74.65% and, in addition, the CEO Ignatius Navil Noronha holds 1.96% stake under public shareholding, thereby the actual free float is only 23.39% which is less than the required 25%?
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That CEO stake won’t come under free float?
and lmao, CNBC can’t even figure that out if it’s true. Yeh log thoda toh research kar sakte hai
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Yes, CEO’s stake doesn’t come under free float. I just checked on NSE website: https://www.nseindia.com/get-quotes/equity?symbol=DMART
If you divide the values of Free Float Market Cap / Total Market Cap from the above URL, you will get approximately 23%.
As per NSE, the free float requirement is only 20%. So DMART actually qualifies for this criteria.
https://www.nseindia.com/products-services/equity-derivatives-selection-criteria
That 20% is the market-wide position limit (MWPL) requirement for open positions – which is completely unrelated to this discussion. It says the MWPL is set at 20% of the free float. So if a company has 30% free float, the MWPL would be 20% of that 30% which is equal to 6% of total market cap.
The free-float criteria for F&O inclusion has always been 25% of total market cap, which DMart does not satisfy. DMart’s current actual free float is around 23.3%.
