Promoters sell their stakes in companies for various reasons such as raising cash, market valuation, regulatory compliance, investment opportunities and much more.
While the sale of shares by promoters can often raise concerns among investors about the company’s future, it is crucial to analyse the context and reasons behind such sales. In some cases, selling can be a smart financial move, while in others, it might indicate problems within the company.
Similarly, Foreign Institutional Investors (FIIs) may sell their stakes due to several reasons including high market valuations, geopolitical risks, profit booking, increased domestic investor activity and more.
Following are the stocks that experienced price fluctuations due to selling activities by FIIs and promoters:
GE T&D India Limited
With a market cap of Rs. 44,183.4 crores, the shares of a leading player in the power transmission and distribution business hit a 5% lower circuit at Rs. 1,725.6 on Wednesday.
According to the August 20th regulatory filings with the stock exchanges, GE T&D India announced that its Promoter Group is considering a minority stake sale to simplify its holding structure.
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The promoter group, consisting of GE Grid Alliance BV (formerly Alstom Grid Holding BV), which holds a 6.46 percent stake, and Grid Equipments Private Ltd, which holds a 68.54 percent stake, is currently reviewing its shareholding structure of the company.
While the promoters are evaluating the possibility of a minority stake sale, they have expressed their strong intention to continue a majority shareholder position in GE T&D India.
The company has reported a significant growth in revenue from operations, with a 33.4 percent YoY rise from Rs. 718 crores in Q1FY24 to Rs. 958 crores in Q1FY25.
Similarly, the net profit jumped by 382 percent YoY from Rs. 28 crores to Rs. 135 crores, during the same period.
The shares of GE T&D India delivered multibagger returns of nearly 400 percent in one year as well as around 226.5 percent returns year-to-date.
GE T&D India Limited is the listed entity of GE Vernova’s Electrification business in India and is engaged in offering products ranging from medium voltage to ultra-high voltage (1200 kV) for the power generation, transmission and distribution industry.
PNB Housing Finance Limited
With a market cap of Rs. 22,827.5 crores, the shares of a registered Housing Finance Company surged 10.2 percent on BSE to hit an intraday high at Rs. 893.6 on Wednesday.
As per a few sources, around 1.39 crore equity shares or a 5 percent stake were sold in a block deal on August 21st on BSE, while a private equity investor General Atlantic Singapore Fund is believed to be the seller.
Earlier on August 20th, it was reported that General Atlantic Singapore Fund FII Pte. Ltd. was planning to divest a 5.1 percent stake in PNB Housing Finance through a block deal translating to an overall deal size of nearly Rs. 1,032.7 crores, at a floor price of Rs. 775 per share.
According to the latest shareholding data, General Atlantic Singapore Fund FII Pte Ltd. holds a 5.13 percent stake in the company.
Earlier on June 30th, PE major Carlyle also sold more than a 13 percent stake in PNB Housing Finance through a block deal worth Rs. 2,642 crores.
The company has reported a significant growth in revenue from operations, with a 6.7 percent YoY rise from Rs. 1,708 crores in Q1FY24 to Rs. 1,823 crores in Q1FY25.
Similarly, the net profit jumped by 24.8 percent YoY from Rs. 347 crores to Rs. 433 crores, during the same period.
The shares of PNB Housing Finance delivered positive returns of nearly 33.6 percent in one year as well as around 12 percent returns year-to-date.
Incorporated in 1988, PNB Housing Finance is primarily engaged in the business of providing loans for the purchase, construction, repair and up-gradation of houses, along with offering loans for commercial space, loans against property and loans for the purchase of residential plots.
Written by Shivani Singh
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