This data item is calculated as shares held by institutional investors divided by total shares outstanding of the company. Institutional investor refers to large financial institutions like mutual funds, pension funds, insurance companies  endowment funds etc. Examples of institutional investors are Life Insurance Corporation of India and HDFC Mutual Fund

Institutional investors have superior research capabilities and perform extensive analysis about the company before investing in it. A high institutional investor stake in a company is considered to be an endorsement about the company’s prospect