Experts say promoters are cashing out at high valuations, either to diversify holdings or fund new ventures. While the surge raises short-term market liquidity concerns, many sellers are reportedly reinvesting in family offices and alternative assets for long-term wealth preservation.
The value of bulk and block deals on stock exchanges hit a new high for this year at ₹91,645 crore in May as promoters of leading companies trimmed their holdings, given the growing economic uncertainty.
The sell-side bulk deals increased more than five times last month to ₹62,230 crore against ₹11,338 crore logged in April, while on the buy-side, it was up 86 per cent to ₹18,113 crore (₹9,734 crore), according to exclusive data sourced from Prime Database. The number of bulk deals also jumped last month to 941 against 762 deals in April.
Similarly, sell-and-buy side block deals increased multifold to ₹5,647 crore (₹506 crore) last month while the number of deals were up at 26 (5) last month.
Block deals are private arrangements between a single seller and buyers. They are transacted in a separate window of the exchanges and have a minimum transaction size of ₹10 crore. On trading days, two block deal sessions of 15 minutes each are conducted in the morning and afternoon. Bulk deals involve transactions where at least 0.5 per cent of a company’s equity changes hands.
The large deals Bharti Airtel promoter Pastel selling shares worth ₹12,880 crore through bulk deal last month. Pastel directly holds 9.49 per cent stake in the telecom operator as of March-end.
Similarly, British multinational BAT Plc trimmed its ownership in conglomerate ITC by divesting a 2.5 per cent stake for ₹12,927 crore while InterGlobe Aviation promoter Rakesh Gangwal and his family trust sold a 5.7 per cent stake in the airline for about ₹11,385 crore through block deal.
Ajay Garg, CEO, SMC Global Securities said the increase in bulk and block deals were led by promoter selling the stake to lock in gains, fund new ventures or diversify their portfolios.
However, concentration of selling in certain segments could raise concerns about market liquidity and stability, particularly in smaller companies, though this does not necessarily reflect domestic economic weakness, he added.
Nikunj Saraf, VP, Choice Wealth said when promoters unload stakes at record volumes, it reflects that valuations have peaked and signals caution on future growth.
With rich market multiples, promoters are encouraged to monetize their holdings even at 3–8 per cent discounts on block deals as they opt to lock in gains rather than risk a potential fall in valuation, he said.
The rising global headwinds and muted March quarter earnings have cast doubt on near‐term earnings momentum, he added.
However, Saraf added many promoters reinvest proceeds into diversified portfolios—creating family offices, setting up alternate asset classes or estate‐planning vehicles to secure wealth across generations.
Published on June 3, 2025