look news india
Ahmedabad: The Indian stock market is going through a golden period, especially after the shock of the corona epidemic. Not only has the stock market seen an increase in new participants, but the boom in the market has also welcomed investors. Taking advantage of this boom, the promoters, including the founders of the company, who have invested heavily in the last few years, have also got the option to exit. In the first half of 2024, the promoters of the company took advantage of the boom in the stock market and attractive valuations and sold a total of Rs. 87,400 crore worth of shares.
In the calendar year 2023, promoters sold a large number of stakes after a record surge. Last year, Rs. was raised from the sale of equity shares. This year's figure is just 12 per cent less than Rs 99,600 crore. 2023 has been the best year in terms of promoter stake sale.
According to an analysis done by Kotak Institutional Equities, promoters of top 500 companies sold shares worth Rs. 87,400 crore. Promoters and private investment firms have sold a large number of shares.
According to the Kotak report, the main reasons behind promoters selling more shares include business expansion, compliance with minimum shareholding norms, debt reduction, change in promoter family holdings, personal reasons and strategic restructuring of promoter interests.
Major deals in the six months include Vodafone Plc's Indus Towers deal worth Rs. 15,300 crore, InterGlobe's share sale to promoters worth Rs. 10,200 crore and Tata Group flagship Tata Consultancy Services' Rs. 9300 crore share sale.
Private equity firms also raised Rs. 39,300 crore or $4.7 billion worth of shares were sold. Some PE firms also sold their shares through IPOs. According to a Kotak report, PE firms have taken advantage of the bull market by selling all or part of their stake. In the past few years, the volume of shares offered for sale has far exceeded new investments.
Decrease in promoters' stake
Large-scale sale of shares by promoters has led to a reduction in their overall market share. The promoters' stake has declined from 42.1 per cent at the end of the December 2022 quarter to 38.8 per cent at the end of the March 2024 quarter. Data for the June 2024 quarter is not yet available, but it is believed that this figure may fall further.