Promoters of small- and mid-cap companies have offloaded stake worth over Rs 41,000 crore so far in the ongoing fiscal, taking advantage of the rally in the small- and mid-cap universe.
The Nifty mid-cap and small-cap indices rallied 76% and 61%, respectively, to their peak in FY24 before paring gains, following the market regulator's advisory to mutual funds, asking them to protect investor interest amid "froth" building up in small and mid caps.
The cumulative value of equity sale transactions by promoters (of small, mid-cap and large-cap companies) stood at over Rs 47,500 crore so far in the ongoing fiscal, while buy transactions totaled a little over Rs 7,800 crore, a study of NSE data for insider trade transactions by NDTV Profit Research showed.
The biggest promoter sale took place in August 2023, when Hulst BV, owned by Baring Private Equity Asia, sold 1.6 crore shares of Coforge Ltd. worth Rs 7,684 crore.
Shares of the company rose over 26% to their peak, before paring gains to trade 2% over the closing price on the day of the deal.
The two biggest promoter 'buy' transactions were made by Housing Development Finance Corp. in June 2023, before its merger with HDFC Bank Ltd.
HDFC increased its stake in HDFC Life Insurance Co. Ltd. by adding 3.5 crore shares worth over Rs 2,300 crore. The promoter's stake stood at 50.3% as of the quarter ended June, up 1.68% from the preceding quarter.
Off-Market Transactions
Promoters of small- and mid-cap companies made bigger transactions off-market, as compared with the cumulative figure for market purchase transactions.
Total value for off-market 'buy' transactions stood at over Rs 10,400 crore, as compared with Rs 7,800 crore for market purchase transactions.
Off-market purchases were led by promoters of small- and mid-cap companies who bought equities worth Rs 9,800 crore.
The largest off-market transaction was made by Jasti Property and Equity Holdings Pvt., promoters of Suven Pharmaceuticals Ltd., who made a sale worth Rs 6,313 crore.
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