Bengaluru, Oct. 19 -- Promoter stake increase occurs when a company's founders or key shareholders raise their ownership by acquiring more shares, either through the open market or structured deals such as rights issues or buybacks. This move often reflects confidence in the company's future, a belief that it is undervalued, or preparations for significant changes like restructuring or going private.

Typically, when promoters increase their stake, it is viewed positively, signaling long-term commitment and confidence in the company's growth. However, it may also serve as a strategy to strengthen control, prevent takeovers, or align their interests with other shareholders. Investors should consider the reasons behind such increases to gau...