In 2024, the Indian stock market has soared to new all-time highs, prompting many company promoters and institutional investors to monetize their holdings through block deals and bulk trades.
This trend extends beyond promoters, as institutional investors such as mutual funds and foreign portfolio investors actively trim their positions in certain stocks to book profits and rebalance their portfolios.
Experts believe this wave of stake sales is driven by the desire to capitalize on the market’s record-breaking performance. The proceeds are likely being used for deleveraging, funding expansion plans, or redeploying capital into other opportunities.
Block deals are large transactions of shares, typically more than 0.5% of a company’s equity, executed in a single trade. They are often utilized by large investors like promoters, institutions, or private equity firms to buy or sell significant stakes in a company.
Bulk deals refer to trades where the total value of shares traded exceeds ₹5 crore. bulk deals can involve multiple trades executed throughout the day.
Here are 5 large stocks in which ₹65,950 Crore worth of shares have been sold via Block and bulk deals in 2024
Indus Towers Ltd
Indus Towers Limited is engaged in the business setting up, operating, and maintaining wireless communication towers. The company has a tower market share of 33% and a tenancy market share of 42% which makes it a leader in the telecom tower industry in India.
In 2024, significant transactions involving Indus Towers’ shares have been notable. Vodafone Group PLC recently divested a 17.98% stake (47.8 crore shares) in Indus Towers, amounting to Rs 17,980 crore ($2.3 billion) through block deals at prices ranging from Rs 310 to Rs 341 per share, executed on June 19.
Earlier in February 2024, KKR, Canada Pension Plan Investment Board (CPPIB), and another entity collectively sold shares of Indus Towers valued at Rs 3,978 crore through bulk deals, at prices ranging from Rs 210.21 to Rs 215.28 per share, conducted via open market transactions.
Cumulatively, the total worth of block and bulk deals involving Indus Towers in 2024 has been estimated at approximately Rs 21,958 crore.
In the fiscal year 2023-24, the company achieved a consolidated net profit of ₹6,036 crores, marking a substantial 196% increase from the previous fiscal year. Additionally, total revenue for the year grew by 0.8%, reaching ₹28,601 crores.
Indus Towers Ltd shares have gained 82% in the last six months and shares have gained 104% in the last 12 months.
ITC Limited
ITC is the largest cigarette manufacturer and seller in the country. ITC operates in five business segments at present FMCG Cigarettes, FMCG Others, Hotels, Paperboards, Paper and Packaging, and Agri-Business.
In March 2024, British multinational BAT Plc divested 3.5 percent of its ownership in ITC Ltd for Rs 17,485 crore through open market transactions, including a block deal.
British American Tobacco Plc (BAT), through its affiliate Tobacco Manufacturers (India) Ltd, divested over 43.68 crore equity shares of ITC in block deals to institutional investors, with an average selling price of Rs 404.40 per share.
In the fiscal year 2023-24, the company reported a consolidated net profit of ₹20,751 crores, reflecting a significant 6.5% increase compared to the previous fiscal year. Moreover, total revenue for the year saw a marginal decline of 0.05%, amounting to ₹70,881 crores.
ITC Limited shares have fallen 5.5 % in the last six months and shares have declined 7.2 % in the last 12 months.
Tata Consultancy Services Ltd
Tata Consultancy Services(TCS) is engaged in the business of IT services, consulting, and business solutions. The company offers a consulting-led, cognitive-powered, integrated portfolio of business, technology, and engineering services and solutions.
In March 2024, Tata Sons, the primary shareholder of TCS, divested 2.34 crore shares, representing a 0.65% stake in the company through a block deal. The transaction was conducted at a floor price of Rs 4,001 per share, reflecting a discount of 3.45% from the previous day’s closing price.
The total value of the block deal amounted to approximately Rs 9,300 crore ($1.1 billion).
During the fiscal year 2023-24, TCS reported a consolidated net profit of ₹46,099 crores, marking a significant 9% increase compared to the previous fiscal year. Moreover, the company’s total revenue for the year rose by 7%, reaching ₹2,40,893 crores.
Tata Consultancy Services Limited shares have gained by 0.5 % in the last six months and shares have gained 20% in the last 12 months.
Interglobe Aviation Ltd
InterGlobe Aviation Limited is engaged in aviation management, hotel development, and management services. The company also works in passenger and cargo management and also offers travel distribution services, such as itineraries and domestic. As of FY23, the company has a 55 percent market share in domestic passenger airlines.
In March 2024, Rakesh Gangwal, co-founder of the firm, raised ₹6,785 crore by selling 2,25,00,000 shares at an average price of ₹3,016 per share through a bulk deal.
In June 2024, Rahul Bhatia’s InterGlobe Enterprises Pvt Ltd divested a 2% stake in Indigo Airlines for ₹3,689 crore by selling 77,19,573 equity shares, amounting to a 1.99% stake in InterGlobe Aviation.
In 2024, the total value of bulk deals in Interglobe Aviation Ltd is estimated to be around ₹10,474 crores.
During the fiscal year 2023-24, the company reported a consolidated net profit of ₹8,167 crores, a significant turnaround from a loss of ₹317 crores the previous year. Additionally, total revenue for the year increased by 26%, reaching ₹68,904 crores.
Interglobe Aviation Ltd shares have gained by 47 % in the last six months and shares have gained 75% in the last 12 months.
Mphasis Ltd
Mphasis, a global provider of information technology (IT) solutions specializing in cloud and cognitive services, uses next-generation technology to assist firms in transforming their businesses globally.
In June 2024, Blackstone sold 28.5 million shares of Mphasis Ltd, representing a 15.1% stake, through a bulk deal on the National Stock Exchange (NSE). The shares, priced at ₹2,363.37 each, amounted to a total of ₹6,735.6 crore.
In the fiscal year 2023-24, the company achieved a consolidated net profit of ₹1,555 crores, marking a substantial 5% decrease from the previous fiscal year. Additionally, total revenue for the year slightly declined by 3.7%, reaching ₹13,279 crores.
Mphasis Ltd shares have declined by 11 % in the last six months and shares have gained 32% in the last 12 months.
Written by Omkar Chitnis
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