This data item is calculated as shares held by strategic entities divided by total shares outstanding of the company. Strategic entities are individuals or corporates who invest for the purpose of gaining stake in the company. They are usually the promoters and are interested in running the company and may even hold board positions

A very high or very low strategic ownership percentage is not desirable. A very high strategic ownership stake will automatically lead to lesser holdings by institutional and retail investors. In such a situation strategic owners might take decisions that is adversarial to retail shareholders interest. A very low strategic ownership stake means promoters are not sufficiently invested in the company and might not be interested in running the company