Minority shareholder
Regulation & taxA shareholder without control, whose interests may diverge from the majority owner’s.
In plain terms
When the promoter has objectives beyond the share price, this is who funds them.
1678 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Royalty to parent
Fundamental analysisA fee, usually a percentage of sales, that an Indian subsidiary pays its foreign parent for brands or technology.
In plain terms
A related-party payment that moves profit from Indian minority shareholders to the parent. Watch for increases in the rate.
Warrants
Fundamental analysisA right issued by a company to buy its own shares later at a fixed price, frequently allotted to promoters.
In plain terms
Watch the strike price and who holds them. Promoter warrants priced well below where the share eventually trades are a transfer from minority shareholders, disclosed in the notes rather than announced.