Promoters And Investors Sell ₹24,000 Crore In Shares As Mid-Cap Rally Triggers Block Deal Boom

A rebound in mid and small-cap stocks has set off a wave of profit booking.

Promoters, private equity funds and venture capital investors have offloaded shares worth more than ₹24,000 crore through block and bulk deals in May and June, marking a sharp turnaround from the lull seen during the height of the West Asia conflict in March and early April.

How The Numbers Moved

• March: Block and bulk deal activity dropped to marginal levels.

• May: Secondary share sales rebounded to ₹15,900 crore.

• June: Activity remained strong at ₹9,000 crore.

• Combined May-June total: Over ₹24,000 crore.

Who Sold What

A string of high-profile names cashed in during the period:

• Vedanta promoter entity Twin Star Holdings: ₹1,896 crore worth of shares.

• Srinivasan Ravi (Craftsman Automation): 2% stake for ₹485.6 crore.

• PB Fintech's Yashish Dahiya and Alok Bansal: Nearly 0.8% stake worth ₹665.38 crore.

• Anand Rathi Financial Services: 1.74% stake in Anand Rathi Wealth for ₹500 crore.

• Actis Pine Labs Investment Holdings: 2.08% stake in Pine Labs for ₹371 crore.

• Altimeter Growth Partners Fund III: 1.36% stake in Pine Labs for ₹211 crore.

• Alpha Wave Ventures: Entire 1.93% stake in Delhivery for ₹664.7 crore.

• Fila Fabbrica Italiana Lapis Ed Affini: DOMS Industries shares worth ₹934.7 crore.

• Fidelity Investments affiliates: Meesho shares worth ₹988.15 crore.

Who Is Buying

Domestic mutual funds have absorbed the bulk of this supply, sitting on strong cash positions built up through steady systematic investment plan (SIP) inflows from retail investors.

Prakash Bulusu, Joint Chief Executive at IIFL Capital, said promoters and early investors are using favourable market conditions to monetise holdings, rebalance portfolios and meet liquidity needs, while domestic institutions continue to see healthy inflows that create real appetite for quality businesses available through block transactions.

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Why Now

Three factors are converging to drive this activity:

• Market recovery: The Nifty 500 is up nearly 12% since 30 March, the Nifty Midcap 150 has risen 17%, and the Nifty Smallcap 250 has surged 23.5%.

• Muted IPO pipeline: With fewer new listings between March and June, investor capital that would have gone into initial public offerings (IPOs) has flowed into secondary block deals instead, according to experts.

• Lock-in expiries: Several recent IPO lock-in periods have expired, freeing up promoters, anchor investors and pre-IPO shareholders to sell. Sovereign funds, global asset managers and domestic mutual funds flush with SIP money are absorbing this supply at scale.

Source:

The Economic Times