How India's stock show set the stage for a bulk deal bonanza
stock market took off, block and bulk deals shot up 55% to touch a record ₹5.25 trillion, data from Prime Database showed. Sectors that saw the biggest deals were financial services, consumer goods, telecom, aviation, pharmaceuticals, IT and power.
Among the year's biggest sellers were Adani group promoters, British American Tobacco, and IndiGo co-promoter Rakesh Gangwal. “Aside from the bullish sentiment and robust earnings, there has been a significant improvement in corporate governance standards," said Bhavesh Shah, managing director and head, investment banking at Equirus.
“A convergence of these factors has led to heightened activity in the capital markets, with IPO and block deals delivering superlative outcomes to the founders, PE investors and other shareholders." The Nifty 50 that fell 1.7% the previous year jumped 28.6% in FY24, setting the stage for lucrative share sales. The broader market gained even more— the Nifty Midcap 150 index surged 56.7%, against a marginal gain of 0.7% in FY23; while the Nifty Small Cap index shot up 63%, after slipping 8.6% in FY23.
Fund-raising via IPOs rose 19% in FY24, with 76 companies raising ₹61,915 crore, up from the previous year's ₹52,116 crore from 37 IPOs. The value of block and bulk deals have been steadily rising over the past five years, clocking ₹1.4 trillion in FY19, ₹1.96 trillion in FY20, ₹2.78 trillion in FY21, ₹2.79 trillion in FY22, and ₹3.38 trillion in FY23.
“The participation of promoters through such sales is also a reflection of demand outstripping supply for well-run businesses, creating more liquidity in the counter enabling future value creation," Shah of Equirus said. Promoter stake sales during the year shot up 82% to touch ₹1.16 trillion, making up
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