Bulk sales hitch a ride on soaring stock mkt
MUMBAI : Bulk share sales have hit a record $11 billion during FY24 so far, as promoters and large public investors cashed in on a buoyant equity market fuelled by nimble earnings growth. A Mint analysis showed that key stakeholders, including promoters, have sold shares worth over ₹1.35 trillion through bulk and block deals during the calendar year so far, out of which deals worth over ₹92,800 crore were concluded in the first five months of FY24, which is more than double that of the same period last year.
“A strong market rally driven by the resumption of robust FII (foreign institutional investor) flows, sustained domestic inflows, especially in small-cap funds, led to a valuation re-rating across the board, and investors looking for transactions where they could deploy significant ticket sizes in one go have contributed to the surge in share sales," said Subhrajit Roy, India head, global capital markets, Bank of America. In 2023 so far, Adani Group promoters offloaded stakes worth around ₹37,441 crore via block and bulk deals in five group firms.
The Vedanta Group’s promoter Twin Star Holdings divested 4.1% in Vedanta Ltd for ₹3,983 crore, while IndiGo co-promoter Rakesh Gangwal’s wife Shobha Gangwal sold all of her 2.99% stake in InterGlobe Aviation for ₹2,801.8 crore. Recently, a promoter group of Sajjan Jindal-led JSW Energy Ltd sold 1.3% to GQG Partners for ₹717.6 crore.
And, on Friday, Pfaudler Inc. sold a 13.56% stake in GMM Pfaudler Ltd for ₹824 crore.
“If this trend sustains, we think this will create a positive investment mindset for future deals and will also encourage issuers to tap capital markets for their needs," Roy added. To be sure, capital-raising gained momentum only in the second half of the
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