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Time of India
3 days ago
- Business
- Time of India
Stock market rally under threat! Rs 1 lakh crore shares dumped by promoters, private equity firms & strategic investors; what's happening
Promoters offloaded approximately Rs 61,000 crore in shares, while PE/VC firms exited nearly Rs 28,000 crore. (AI image) Promoters, private equity firms, and other large strategic investors disposed of shares worth over Rs 1 lakh crore within two months, exerting supply-side pressure on India's stock market indices Sensex and Nifty, which pursued new record highs. Promoters offloaded approximately Rs 61,000 crore in shares, while PE/VC firms exited nearly Rs 28,000 crore. Additionally, Reliance Industries sold shares worth Rs 9,580 crore in Asian Paints, alongside various block deals by other strategic investors, bringing the total to over Rs 1 lakh crore, according to data from PRIME Database and the NSE data quoted in an ET report. The share sale trend began in May with several significant transactions. On May 16, Singapore Telecommunications sold Bharti Airtel shares valued at Rs 12,880 crore. Subsequently, on May 27, Rakesh Gangwal, co-founder of IndiGo, sold shares exceeding Rs 11,560 crore as part of a stake reduction in InterGlobe Aviation. The following day, British American Tobacco (BAT) offloaded a 2.5% stake in ITC through its subsidiary for approximately Rs 12,900 crore, marking one of the largest single-day exits recorded. In June, Vishal Mega Mart's promoter sold a 19.6% stake to mutual funds in a bulk deal worth Rs 10,220 crore. Earlier in the month, Bajaj Finserv's promoter offloaded around Rs 5,500 crore worth of shares. These figures are expected to increase with additional block deals in PB Fintech, Mobikwik, Coforge, and Delhivery executed on Thursday. Market dynamics are seeing a dual effect due to supply-side pressures. "Selling by promoters/PE is being witnessed in few stocks and in those companies, in the short term, upside can be capped as most of the demand from institutions have been fulfilled and support in the secondary market is likely to reduce," warned SBI Securities' Sunny Agrawal according to the ET report. The surge in block/bulk deals stems from increased market liquidity, with domestic investors and mutual funds having substantial capital, alongside renewed FII participation, according to PRIME Database MD Pranav Haldea in his discussion with ETMarkets, highlighting the key factors behind the current selling trend. Addressing market dynamics, he offered a balanced perspective on current conditions. "Some promoters and investors have sold because valuations were attractive for them while others have their own strategic reasons. It's not necessarily a sign of a market peak, which no one can predict." Regarding PE/VC exits, Haldea views this as positive market development. The trend of private equity and venture capital firms divesting through IPOs and block deals indicates a more sophisticated capital market structure and increased depth. This pattern aligns with established western markets, enabling these firms to generate returns for investors and secure fresh capital for new investments. Investment experts note that understanding the scale and circumstances of divestment is more crucial than focusing on raw numbers. "Promoter selling isn't inherently bearish; its signal depends on why the shares are being offloaded and what ownership remains afterward," said Arvind Kothari, smallcase manager and Founder of Niveshaay. According to Kothari, there are several legitimate reasons for promoters to reduce holdings: "In many cases, promoters trim stakes to meet minimum-public-shareholding rules, unlock liquidity for estate or philanthropic planning, onboard marquee strategic or long-only investors, optimize taxes near fiscal year-end, or fund expansion in privately held group businesses — none of which imply deteriorating prospects for the listed entity. " Kothari's essential assessment criteria states: "If the promoter still retains a commanding stake, the sale occurs at only a modest discount, and company fundamentals remain intact, the transaction is simply a liquidity event that can broaden free-float and deepen institutional ownership." Warning signs become apparent "when divestments coincide with slipping earnings, heavy pledge unwinds, or a steady slide toward loss of control," he advised. The substantial increase in supply has been effectively managed by institutional buyers who have absorbed the market pressure. "Some supply pressure is inevitable when markets rally — and to an extent, it's healthy. It improves free float and brings price discovery in names that were tightly held," said Mihir Vora, CIO at TRUST Mutual Fund. "In many cases, we've seen these sales met with strong institutional demand, especially from domestic mutual funds and insurers," Vora added, emphasising the significant role of domestic investors who have become crucial market participants. The investment strategy at his fund prioritises understanding motivations: "We look at the intent behind the sale. If promoters are monetizing to invest back into the business, or if PE/VC funds are exiting after long holding periods, it's not a concern. What we avoid are situations where exits are paired with governance red flags or signs of operational stress." The current phase of insider selling in Indian markets presents a significant challenge. The sustainability of this trend depends on whether domestic institutional investors can maintain their absorption capacity whilst foreign investors sustain their renewed interest in Indian equities. This period could indicate either market maturation or signal the zenith of the present upward trend. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
3 days ago
- Business
- Economic Times
Rs 1 lakh crore selloff tsunami threatens Nifty rally as promoters, strategic investors exit
A staggering Rs 1 lakh crore worth of shares have been dumped by promoters, private equity firms and other large strategic investors in just two months, creating supply-side pressure as India's stock market indices Sensex and Nifty are once again aiming for new record highs. ADVERTISEMENT Promoters alone have offloaded shares worth about Rs 61,000 crore, while PE/VC firms have exited nearly Rs 28,000 crore. Add to that the Reliance Industries' Rs 9,580 crore offloading in Asian Paints and a smattering of block deals by other strategic investors, and the tally breaches the Rs 1 lakh crore mark, according to data compiled from PRIME Database and the NSE. The exodus began in earnest in May with a series of blockbuster deals. Rakesh Gangwal, co-founder of IndiGo, sold shares worth over Rs 11,560 crore on May 27 in a fresh round of stake trimming in InterGlobe Aviation. A day later, British American Tobacco (BAT) offloaded a 2.5% stake in ITC through its subsidiary for around Rs 12,900 crore in one of the largest single-day exits ever recorded. Singapore Telecommunications wasn't far behind, selling Bharti Airtel shares worth Rs 12,880 crore on May 16. June has maintained a frenzied pace. Vishal Mega Mart's promoter sold a 19.6% stake to mutual funds in a Rs 10,220 crore bulk deal, while Bajaj Finserv's promoter offloaded approximately Rs 5,500 crore worth of shares earlier in the month. The figures will surge higher when accounting for block deals in PB Fintech, Mobikwik, Coforge and Delhivery executed on Thursday. The supply pressure is creating a bifurcated impact across the market. "Selling by promoters/PE is being witnessed in few stocks and in those companies, in the short term, upside can be capped as most of the demand from institutions have been fulfilled and support in the secondary market is likely to reduce," warned SBI Securities' Sunny Agrawal. ADVERTISEMENT Also Read | Promoter, PE & VC selling crosses Rs 40,000 crore in 2 weeks: Red flag for Nifty bulls? "Block/bulk deals are happening as domestic investors and mutual funds are flush with money and now FIIs too have come back which has resulted in greater liquidity in the market," PRIME Database MD Pranav Haldea told ETMarkets, noting the confluence of factors driving the selling spree. ADVERTISEMENT The veteran market observer struck a measured tone on whether this represents a market peak. "Some promoters and investors have sold because valuations were attractive for them while others have their own strategic reasons. It's not necessarily a sign of a market peak, which no one can predict."Haldea sees the PE/VC exodus as a sign of maturation rather than distress. "PE/VC selling through IPOs and then further through blocks is a sign of maturing of the capital market ecosystem and a deepening of the market. This is similar to what we find in the western markets as well. Through such exits, they are able to return money to their investors and then raise money to invest in the next set of companies." ADVERTISEMENT Market veterans emphasize that the quantum and context of selling matters more than the absolute numbers. "Promoter selling isn't inherently bearish; its signal depends on why the shares are being offloaded and what ownership remains afterward," said Arvind Kothari, smallcase manager and Founder of outlined multiple benign reasons for promoter exits: "In many cases, promoters trim stakes to meet minimum-public-shareholding rules, unlock liquidity for estate or philanthropic planning, onboard marquee strategic or long-only investors, optimize taxes near fiscal year-end, or fund expansion in privately held group businesses — none of which imply deteriorating prospects for the listed entity." ADVERTISEMENT The key litmus test, according to Kothari: "If the promoter still retains a commanding stake, the sale occurs at only a modest discount, and company fundamentals remain intact, the transaction is simply a liquidity event that can broaden free-float and deepen institutional ownership."Red flags only emerge "when divestments coincide with slipping earnings, heavy pledge unwinds, or a steady slide toward loss of control," he the supply deluge, institutional demand has largely absorbed the selling pressure. "Some supply pressure is inevitable when markets rally — and to an extent, it's healthy. It improves free float and brings price discovery in names that were tightly held," said Mihir Vora, CIO at TRUST Mutual Fund."In many cases, we've seen these sales met with strong institutional demand, especially from domestic mutual funds and insurers," Vora added, highlighting the robust domestic investor base that has emerged as the market's fund's approach focuses on intent: "We look at the intent behind the sale. If promoters are monetizing to invest back into the business, or if PE/VC funds are exiting after long holding periods, it's not a concern. What we avoid are situations where exits are paired with governance red flags or signs of operational stress."As Indian markets navigate this wave of insider selling, the ultimate test will be whether domestic institutional investors can continue absorbing the supply while foreign investors maintain their renewed interest in Indian equities. The answer may well determine whether this selling spree marks the peak of the current rally or simply the growing pains of a maturing market ecosystem. (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
3 days ago
- Business
- Time of India
Rs 1 lakh crore selloff tsunami threatens Nifty rally as promoters, strategic investors exit
A staggering Rs 1 lakh crore worth of shares have been dumped by promoters, private equity firms and other large strategic investors in just two months, creating supply-side pressure as India's stock market indices Sensex and Nifty are once again aiming for new record highs. Promoters alone have offloaded shares worth about Rs 61,000 crore, while PE/VC firms have exited nearly Rs 28,000 crore. Add to that the Reliance Industries ' Rs 9,580 crore offloading in Asian Paints and a smattering of block deals by other strategic investors, and the tally breaches the Rs 1 lakh crore mark, according to data compiled from PRIME Database and the NSE. The exodus began in earnest in May with a series of blockbuster deals. Rakesh Gangwal , co-founder of IndiGo , sold shares worth over Rs 11,560 crore on May 27 in a fresh round of stake trimming in InterGlobe Aviation. A day later, British American Tobacco (BAT) offloaded a 2.5% stake in ITC through its subsidiary for around Rs 12,900 crore in one of the largest single-day exits ever recorded. Singapore Telecommunications wasn't far behind, selling Bharti Airtel shares worth Rs 12,880 crore on May 16. June has maintained a frenzied pace. Vishal Mega Mart 's promoter sold a 19.6% stake to mutual funds in a Rs 10,220 crore bulk deal, while Bajaj Finserv 's promoter offloaded approximately Rs 5,500 crore worth of shares earlier in the month. The figures will surge higher when accounting for block deals in PB Fintech, Mobikwik, Coforge and Delhivery executed on Thursday. Live Events The supply pressure is creating a bifurcated impact across the market. "Selling by promoters/PE is being witnessed in few stocks and in those companies, in the short term, upside can be capped as most of the demand from institutions have been fulfilled and support in the secondary market is likely to reduce," warned SBI Securities' Sunny Agrawal. Also Read | Promoter, PE & VC selling crosses Rs 40,000 crore in 2 weeks: Red flag for Nifty bulls? Why are promoters selling? "Block/bulk deals are happening as domestic investors and mutual funds are flush with money and now FIIs too have come back which has resulted in greater liquidity in the market," PRIME Database MD Pranav Haldea told ETMarkets, noting the confluence of factors driving the selling spree. The veteran market observer struck a measured tone on whether this represents a market peak. "Some promoters and investors have sold because valuations were attractive for them while others have their own strategic reasons. It's not necessarily a sign of a market peak, which no one can predict." Haldea sees the PE/VC exodus as a sign of maturation rather than distress. "PE/VC selling through IPOs and then further through blocks is a sign of maturing of the capital market ecosystem and a deepening of the market. This is similar to what we find in the western markets as well. Through such exits, they are able to return money to their investors and then raise money to invest in the next set of companies." Context is King Market veterans emphasize that the quantum and context of selling matters more than the absolute numbers. "Promoter selling isn't inherently bearish; its signal depends on why the shares are being offloaded and what ownership remains afterward," said Arvind Kothari, smallcase manager and Founder of Niveshaay. Kothari outlined multiple benign reasons for promoter exits: "In many cases, promoters trim stakes to meet minimum-public-shareholding rules, unlock liquidity for estate or philanthropic planning, onboard marquee strategic or long-only investors, optimize taxes near fiscal year-end, or fund expansion in privately held group businesses — none of which imply deteriorating prospects for the listed entity." The key litmus test, according to Kothari: "If the promoter still retains a commanding stake, the sale occurs at only a modest discount, and company fundamentals remain intact, the transaction is simply a liquidity event that can broaden free-float and deepen institutional ownership." Red flags only emerge "when divestments coincide with slipping earnings, heavy pledge unwinds, or a steady slide toward loss of control," he cautioned. Institutional Appetite Remains Strong Despite the supply deluge, institutional demand has largely absorbed the selling pressure. "Some supply pressure is inevitable when markets rally — and to an extent, it's healthy. It improves free float and brings price discovery in names that were tightly held," said Mihir Vora, CIO at TRUST Mutual Fund. "In many cases, we've seen these sales met with strong institutional demand, especially from domestic mutual funds and insurers," Vora added, highlighting the robust domestic investor base that has emerged as the market's backbone. His fund's approach focuses on intent: "We look at the intent behind the sale. If promoters are monetizing to invest back into the business, or if PE/VC funds are exiting after long holding periods, it's not a concern. What we avoid are situations where exits are paired with governance red flags or signs of operational stress." As Indian markets navigate this wave of insider selling, the ultimate test will be whether domestic institutional investors can continue absorbing the supply while foreign investors maintain their renewed interest in Indian equities. The answer may well determine whether this selling spree marks the peak of the current rally or simply the growing pains of a maturing market ecosystem. ( Disclaimer : Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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Business Standard
18-06-2025
- Business
- Business Standard
Health-tech sees IPO rush fueled by digitisation, govt ease, AI adoption
Health-tech IPOs (initial public offerings) are on the rise in India's healthcare sector — in fact, five out of the 12 healthcare IPOs in the last one-and-a-half years since January 2024 are health-tech companies. According to data shared by PRIME Database, the healthcare sector has seen 12 IPOs since January 2024, with a total issue size of Rs 20,576 crore. Of these, five companies — Entero Healthcare Solutions, Indegene, Sagility India, Sai Life Sciences and Inventurus Knowledge Solutions — are health-tech firms that have collectively raised over Rs 11,000 crore. Other major healthcare IPOs include Emcure Pharmaceuticals, Akums Drugs and Dr Agarwal's Healthcare. The Covid-19 pandemic had a deep impact on the sector and accelerated digitisation, strengthened public and private focus on tech-enabled healthcare solutions, facilitated government easing, and encouraged the adoption of artificial intelligence (AI) across the spectrum — from diagnostics to personalised treatment. Amitabh Malhotra, vice-chairman of investment banking at HSBC India, noted that the combination of rising incomes, greater insurance penetration, growing demand for medical infrastructure and India's cost competitiveness positions the healthcare industry for sustained, multi-decade growth — driven largely by the private sector. 'The Indian healthcare services market presents a compelling growth story, underpinned by its significant potential and current under-penetration. With healthcare expenditure around 3 per cent of GDP and per capita spend of $57 — among the lowest globally — the sector is ripe for transformation,' Malhotra noted. Health-tech IPOs in India have witnessed significant growth in recent years, fuelled by increasing digitisation of healthcare and a rising focus on technology-driven solutions — spurred by both public initiatives such as e-Sanjeevani and private sector tech-focused offerings, said Vivek Tandon, vice-president at Primus Partners. 'The pandemic played a major role in highlighting the importance of digital health infrastructure, boosting investor interest in companies offering telemedicine, diagnostics and health data solutions. The growing use of AI in healthcare, from diagnostics to personalised treatment, has further enhanced the appeal of these companies. Additionally, government focus and ease of reforms has made it easier for health-tech firms to scale and access public markets,' added Tandon. More firms are gearing up for IPOs over the coming years, including QubeHealth, Vitraya, Practo, Medulance, among others. Mumbai-based B2B health-tech-fintech firm QubeHealth has announced plans to file for an IPO by FY31, with a proposed issue size of approximately Rs 800 crore. 'We expect to process Rs 1,000 crore a year in healthcare payments by FY30, by the time we are ready for our IPO, growing at an average of 70 per cent year-on-year,' said Chris George, CEO, QubeHealth. Vitraya, a Delhi-based health-tech company, said it plans to file its Draft Red Herring Prospectus (DRHP) within the next 24 to 36 months. The company is targeting an IPO issue size of Rs 500 crore. 'The tech sector is heavily regulated, so going public through an IPO offers added credibility and reassurance to both our customers and regulators. For us, the IPO is more about embracing transparency and navigating regulatory frameworks than raising capital or seeking liquidity. Currently, around 80 per cent of our revenue comes from India and 20 per cent from international markets. Post-IPO, we expect the domestic share to further outpace international contributions,' said Mrinal Sinha, CEO and co-founder, Vitraya Technologies. Most of the listed players in the healthcare sector are trading at substantial valuation premiums, making IPOs an important factor, said Chokkalingam G, founder of Equinomics. 'The sector's outlook remains strong, supported by inelastic demand — healthcare is a necessity, and consumers are unlikely to cut back on related expenses even in challenging times.' 'Previously, IPO activity was largely concentrated in pharmaceutical companies and standalone hospitals. However, the landscape is now expanding to include a wide range of ancillary businesses that support healthcare providers. Many of these companies are seeking growth capital and providing liquidity for existing investors. As a result, we are likely to see a significant number of IPOs from this space over the next three years.' healthcare IPOs 1.1.2024 onwards Industry: Hospitals/Diagnostic Services, Medical Equipment/Supplies/Accessories & Pharmaceuticals & Drugs SNO. COMPANY OPENING DATE OFFER PRICE (Rs.) ISSUE AMOUNT ( 1 ENTERO HEALTHCARE SOLUTIONS LTD. 09/Feb/2024 1,258 1,600.00 2 GPT HEALTHCARE LTD. 22/Feb/2024 186 525.14 3 INDEGENE LTD. 06/May/2024 452 1,841.76 4 EMCURE PHARMACEUTICALS LTD. 03/Jul/2024 1,008 1,952.03 5 AKUMS DRUGS & PHARMACEUTICALS LTD. 30/Jul/2024 679 1,856.74 6 SAGILITY INDIA LTD. 05/Nov/2024 30 2,106.40 7 SURAKSHA DIAGNOSTIC LTD. 29/Nov/2024 441 846.25 8 SAI LIFE SCIENCES LTD. 11/Dec/2024 549 3,042.62 9 INVENTURUS KNOWLEDGE SOLUTIONS LTD. 12/Dec/2024 1,329 2,497.92 10 SENORES PHARMACEUTICALS LTD. 20/Dec/2024 391 582.11 11 LAXMI DENTAL LTD. 13/Jan/2025 428 698.06 12 HEALTH CARE LTD. 29/Jan/2025 402 3,027.26
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Business Standard
23-05-2025
- Business
- Business Standard
Secondary market rally triggers IPO market revival hopes, say analysts
Upcoming IPOs: A rocky, but steady recovery in the secondary markets, has put wind in the sails of India's primary market. With the worst for the stock markets, in terms of Indo-Pak war and Donald Trump's tariffs, likely on the backburner, over 60 companies are ready to launch their initial public offerings (IPOs) in the coming months. Data from PRIME Database shows that 66 companies have market regulator Securities and Exchange Board of India's (Sebi's) approval to bring IPOs worth ₹1.02 trillion. Among these, National Securities Depository (likely IPO size ₹3,000 crore), JSW Cement (₹4,000 crore), Manjushree Technopak (₹3,000 crore), LG Electronics India (₹15,000 crore), Credila Financial Services (₹5,000 crore), and Veritas Finance (₹2,800 crore) are some of the marquee names waiting to go public. Analysts feel a meaningful revival in the primary markets is possible over the next six-to-eight months if the secondary markets continue to stabilise. "If the broader market maintains its current levels or trends upward, investor sentiment could improve, encouraging more IPOs. Overall, a stable and positive secondary market is essential for a strong revival in the primary market. If these conditions persist, the outlook appears promising for investors in the coming months," said Ashok Jain, chairman, Arihant Capital Markets. On the bourses, the BSE Sensex and the Nifty50 have bounced back 12 per cent and 12.6 per cent from their respective April lows, while the broader Nifty MidCap and the Nifty SmallCap indices have recouped 18 per cent and 20 per cent, respectively. This has had a rub-off effect on the IPO market where mainline offers are beginning to line up after months of dry spell. Consider this: While the months of January and February 2025 saw 10 mainboard IPOs hitting the Street, March saw nil IPOs, and April saw just one company (Ather Energy) launching its IPO. A similar trend was observed among companies filing for Sebi's approval for IPOs. Data from PRIME Database suggests that over 25 companies filed draft red herring prospectuses (DRHPs) with Sebi in January. These applications dropped to 13 in February and 10 in March, before rising to 20 in April. As for May, two mainboard IPOs – Borana Weaves and Belrise Industries – opened for subscription, receiving healthy investor interest. Borana Weaves IPO, for instance, was subscribed 148.78 times in three days, while Belrise Industries has been subscribed over 6x so far. Further, four more mainboard IPOs – Aegis Vopak Terminals, Schloss Bangalore, Prostarm Info Systems, and Scoda Tubes – will go public next week. Analysts said companies that had put their capital raising plans on hold amid worries related to India-Pakistan, began enquiring about market conditions as soon as the ceasefire was announced between the two countries. "There were tariff uncertainties, war related worries, deferral of capex plans, poor demand, and fallen multiples that prevented companies from aggressively following through on equity raising. With many of these issues now largely behind us we expect primary markets to resume very shortly," said R Venkataraman, managing director, IIFL Capital. Overall, 68 companies have filed their offer documents with Sebi and await its approval, including Hero Fincorp (₹3,668.13 crore), HDB Financial Services (₹12,500 crore), Dorf-Ketal Chemicals India (₹5,000 crore), WeWork India Management (₹2,500 crore), PhysicsWallah (₹4,600 crore), Tata Capital (₹20,000 crore), and Prestige Hospitality (₹2,700 crore), as per PRIME Database.
