Block, stock, and trades: Block trades gather steam and what this suggests

Investment bankers say successful execution of large block trades is a healthy sign and could pave the way for large initial public offerings (IPOs) and additional fund-raising by listed companies

Block deal activity has gained considerable momentum in recent weeks, thanks to a sharp rebound in stock prices from their 2022 lows. Stemming of outflows from overseas investors and supportive domestic institutional investors have given investment bankers the confidence to launch large block trades.

Block transactions are privately negotiated deals carried out under a special trading window provided by stock exchanges. Such deals are typically done at a discount to the market price. Block deals help a large shareholder divest a huge chunk of shares to heavyweight institutional buyers. Such deals were a common occurrence in the immediate aftermath of