$3.9 billion: Block deals gain momentum in June, hit three-year high

Activity in block deals is seen as a precursor to growth in the IPO market, say bankers

Block deals gained momentum in June on the back of buoyant equity markets as $3.9 billion worth of shares changed hands — the highest in three years after May 2020 when $4.7 billion worth such deals were struck.

Some of the companies that were involved in block trades are Coal India, Shriram Finance, HDFC Life, Policy Bazaar and Kalyan Jewellers, among others. A block deal is when 500,000 shares or at least Rs 5 crore worth of shares changes hands in a single transaction. These shares are typically bought by institutional buyers. 

“Whenever momentum shifts in equity markets and flows come back,