Fast off the blocks: Share sale activity hits 9-month high, tops ₹65k cr

Improvement in investor sentiment paves way for large secondary issuances

A sharp rebound in equity markets from April lows, coupled with robust foreign investor flows, has triggered a surge in secondary share sales by listed companies. 

So far this month, share sales via block and bulk deal mechanisms have topped ₹65,000 crore, the highest level since August 2024. The revival follows a four-month lull marked by heightened market volatility. 

Notable transactions in May include Singtel’s ₹13,221 crore stake sale in Bharti Airtel, BAT’s ₹12,941 crore block trade in ITC, cofounder Rakesh Gangwal’s ₹11,564 crore divestment in InterGlobe Aviation, Antfin Holdings’ ₹2,104 crore sale in Paytm, and the Sajjan Jindal Family Trust’s ₹1,210 crore sale in JSW Cement. 

In a sign of bullish market sentiment, most of these share sales were upsized, reflecting that demand exceeded supply of shares on offer. 

Block deals — large share sales by existing shareholders — are executed through a dedicated stock-exchange window, allowing institutional investors like mutual funds to acquire sizeable positions without disrupting market prices. These transactions tend to gain traction in bullish markets with ample liquidity.   

The first quarter of 2025 saw muted primary-market activity amid global trade uncertainty, foreign portfolio investor (FPI) outflows, and subdued corporate earnings. However, sentiment improved following a 90-day pause on reciprocal tariffs announced by US President Donald Trump, even as a 10 per cent baseline tariff remained in place.

 

A swift understanding between India and Pakistan towards de-escalation in hostilities also buoyed investor confidence. Since hitting a low on April 7, the Nifty 50 has climbed more than 10 per cent.

 

“This resurgence has enabled sellers to find demand for their blocks at current levels. Both FPIs and domestic institutions are finding value and are eager to procure material quantities through blocks,” said Amitabh Malhotra, vice-chairman of investment banking, HSBC India.

 

Ajay Saraf, executive director, ICICI Securities, noted that FPIs turning net buyers in April and May after three months of selling has materially boosted sentiment. “Anticipation of a US tariff treaty and easing geopolitical tensions create a conducive environment for transactions. Block deals typically lead, followed by IPOs (initial public offerings) and QIPs (qualified institutional placements), with robust activity expected next quarter,” Saraf said.

 

Bankers expect the momentum in both primary and secondary offers, including block deals, to continue through the rest of 2025. “Benign inflation, expected repo-rate cuts, higher disposable income after income-tax reductions, and a promising monsoon outlook will reinforce India’s structural growth story,” Malhotra added.

 

According to investment bankers, several marquee deals are in the pipeline.

 

“Several high-profile deals are currently in the works, with term sheets being prepared. The market has reached an optimal point, with valuations moderating from their peaks but rebounding from recent lows, attracting both buyers and sellers. Companies like ITC, IndiGo, and Airtel represent compelling long-term investment opportunities, driving strong demand from large investors,” said an investment banker who did not wish to be named.

 

IPO activity has also picked up, with over half a dozen deals hitting the market in May, following a two-month drought.