India Inc Promoters Invest Over $4 billion In Own Stocks As Valuations Ease

India’s top business families took money off the table in 2024 and 2025. They sold shares worth about $56 billion when valuations were high.

In 2026, the trend has flipped. They have started buying again. More than $4 billion has gone back into their own companies so far this year.

The shift comes with the change in markets. Stocks ran strong through 2024 and most of 2025. Valuations stayed elevated, with Indian equities trading near 22 times one-year forward earnings, well above the 10-year average.

This year has been softer. The MSCI India Index is down about 6% in 2026. In March, it had fallen nearly 14% from recent highs.

Breakdown of Promoter Buying Across Companies

The purchases are concentrated in around 11 companies. Here is the breakdown:

• Adani Enterprises: $2 billion through a rights issue subscribed by promoters in line with their existing holdings.

• GMR Airports: $1 billion by domestic promoters buying out a 7.3% stake from foreign promoters across three tranches.

• JSW Energy: $317 million through preferential allotment, including convertible warrants, adding 1% to promoter stake.

• Godrej Properties: $258 million in open market purchases, lifting promoter holding by 4.5%.

• Adani Energy Solutions: $197 million in open market buys, adding 1.5% to stake

• Maruti Suzuki: $123 million, though the stake increase was just 0.2% given the company's $43.7 billion market cap

• Grasim Industries: $108 million in market purchases, adding 0.5% for the Aditya Birla Group

• Jindal Stainless: $58 million

• Lodha: $44 million

• Indus Towers: $29 million

• Gateway Distriparks: $3 million

Where The Conviction Is

Data shows the buying has been focused on asset-heavy sectors like power, infrastructure and real estate. These businesses tend to see sharper valuation cuts during corrections.

That is where promoters step in. They usually have a longer horizon and can stay patient.

Buying into your own infrastructure or power company at a 10-year average multiple is a very different call. It does not carry the same risk as buying at a 22 times premium.

Why Valuations Were The Trigger

The one-year forward price-to-earnings ratio fell to 18.3 times at the March 2026 market bottom. It has since moved up to around 20.2 times. That is close to the 10-year average of roughly 20 times.

Jefferies analysts say this kind of normalisation matters. After a long phase of premium pricing, this is usually when promoters start increasing their stakes.

Also Read - Coca-Cola’s Q1 2026 Volume Rises 3%, India Among Key Growth Drivers

The Context Behind The Numbers

Promoter shareholding in BSE-500 companies had been falling for a while. It dropped by about 1 percentage point between December 2023 and December 2025, reaching a low of 48.4%. A large part of the 2024-25 selling came from foreign promoters.

Companies like Hyundai, BAT, LG, Whirlpool and Timken used high valuations to cut or exit their Indian holdings. These deals made up roughly $18 billion of the $56 billion total. Most of these exits are now done. Domestic promoters, who stayed through the cycle, have started adding again.

Source:

Economic Times