The Gujarati phrase Bhav Bhagwan Che — Price is God — has echoed louder than ever in recent months. Since hitting a year-to-date low of 21,760 on April 7, the Nifty 50 has surged 14.2% and now hovers near the 25,000 mark. Riding this rally, promoters have wasted no time offloading stakes through a flurry of bulk and block deals.
Generally, high promoter and institutional shareholding signals investor confidence in a company. So retail investors usually see stake sales as a red flag, but they aren’t always negative. Promoters and institutions often sell shares to raise funds for expansion, meet public shareholding norms, reduce debt, adjust family holdings, or book profits.
In FY25, Nifty 500 companies recorded a profit-to-GDP growth of 4.7%, the highest in 17 years. Strong March quarter results helped the Nifty50 rise 11.3% over the last three months, outperforming global peers despite geopolitical and trade risks.
Amid these gains, promoters and institutional investors have sold large stakes through block and bulk deals. Promoters sold shares worth over Rs 57,720 crore in just the past month—this is higher than the Rs 37,100 crore sold by institutional investors. So far in 2025, promoters have offloaded shares worth Rs 71,000 crore.
Amit Ramchandani, CEO of Motilal Oswal Investment Banking, said, “Valuations have risen over the past month, so sales of shares by promoters and Private Equity (PEs) could continue at this pace until the end of June. The window to sell is not very large because the results season will begin. The geopolitical situation could also worsen.”
In this Chart of the Week, we analyse these stake sales through block and bulk deals over the past month, and the reasons behind them.
According to a Trendlyne screener that tracks bulk and block deals of promoters and institutional investors in Nifty500 firms, 29 companies have witnessed significant deals over the past month. Major names include Jubilant Pharmova, Bharti Airtel, InterGlobe Aviation, Asian Paints, Aptus Value Housing, and KFIN Technologies.
Rising valuations, changing priorities: promoters sell stakes
Promoters’ shareholding in the Nifty 500 reached a record low of 49.5% in FY25, down from 52.1% in FY15, due to high valuations, increased participation from domestic institutional investors (DIIs), retail investors, and regulatory requirements.
Over the past month, promoters reduced stakes in sectors such as infrastructure, manufacturing, pharmaceuticals, and financial services, driven by regulatory policies, investment requirements, and profit booking across stocks including JSW Infrastructure, PG Electroplast, KPR Mill, Suzlon Energy, and Bajaj Finserv.
JSW Infrastructure’s promoter entity, Sajjan Jindal Family Trust, sold a 2% stake worth Rs 1,210 crore on May 17 to meet SEBI’s minimum public shareholding requirement of 75%. The company plans to use the proceeds to support its Rs 39,000 crore investment to expand port operations and its logistics network over the next five years.
Post-deal, promoter holding decreased to 83.6%. The JSW management has planned to reduce promoter shareholding below 75% by September 2026.
Since its October 2023 listing, JSW Infrastructure shares have soared 154.1%, driven by a five-year revenue CAGR of 31.3% and profit growth of 50.5%, as the company scaled up cargo volumes and expanded its port and logistics operations.
PG Electroplast promoters sold a 5.6% stake worth Rs 1,177 crore on May 27, reducing their holding to 43.8%. The stake sale took place on the same day the company was announced for inclusion in the NSE’s Futures and Options (F&O) segment, effective June 27.
For FY26, the company targets a 30–35% increase in revenue, driven by demand across key categories like air conditioners and washing machines.
Vikas Gupta, Managing Director, said, “We expect the air conditioner segment to contribute around Rs 4,000 crore in FY26, up from Rs 3,000 crore last year. We’ve planned a capex of Rs 800–900 crore for setting up new plants and expanding our air conditioner business. Over the next three years, we’re targeting a CAGR of 35%.”
Similarly, on June 5, Bajaj Finserv's promoter group–Jamnalal Sons and Bajaj Holdings—offloaded a 1.9% stake worth Rs 5,828 crore via a block deal.
Jubilant backs beverage bet, Reliance unlocks value in paints
Conglomerates trimmed stakes in speciality chemicals, pharmaceuticals, and paints industries to realign priorities and support diversification. Jubilant Bhartia Group reduced holdings across three stocks, while Reliance Industries cut its long-term stake in Asian Paints.
Jubilant Bhartia Group, the promoters of Jubilant FoodWorks, Jubilant Pharmova, and Jubilant Ingrevia, offloaded minority stakes in all three listed companies to raise Rs 2,000 for acquiring a 40% stake in Hindustan Coca-Cola Beverages (HCCB).
In December 2024, the group decided to acquire the stake in HCCB for Rs 12,500 crore and planned to fund it through Rs 5,650 crore in Non-Convertible Debentures, stake sales, and internal accruals.
On July 13, the promoters sold a combined 10.2% stake across the three companies. Post the deal, their holding fell to 40.3% in Jubilant FoodWorks, 45.2% in Jubilant Pharmova, and 48.1% in Jubilant Ingrevia.
Asian Paints holds a 52% share of the paint market and saw a large block deal on June 12 and 16 after Reliance Industries, through Siddhant Commercials, sold a 4.4% stake worth Rs 9,580 crore. Following the deal, Reliance’s stake decreased to 1.3%.
Reliance had acquired a 4.9% stake in Asian Paints for Rs 500 crore in January 2008. Seventeen years later, the investment has delivered a 1,440% return. However, over the past year, Asian Paints’ share price has declined 22.5% due to a drop in revenue and profit in FY25.
Analysts at Morgan Stanley note that Asian Paints has lost market share from 59% to 52% over the past year, and they expect the decline to continue over the next three years. New entrants like JSW Paints are poaching customers, and this trend is unlikely to change in the coming years.
Promoters cash out after strong gains
Promoters of three large-cap stocks—InterGlobe Aviation, Bharti Airtel, and ITC—executed block deals worth over 37,500 crore in the past month to rebalance portfolios, reduce debt, capitalise on valuation gains, and fund long-term strategies.
Telecom player Bharti Airtel recorded a 1.2% stake sale by its promoter Singtel via a block deal on May 16 for Rs 13,221 crore. Singtel’s holding fell to 28.3% after the transaction. Trendlyne data shows Bharti Airtel's promoter holding has decreased by 14.3% over the past decade, while the stock has gained 341.8% in the same period.
Meanwhile, InterGlobe Aviation (IndiGo) co-founder and promoter Rakesh Gangwal, through the family trust, sold a 5.7% equity stake worth over Rs 11,385 crore. The sale reduced the Gangwal-backed promoter group’s holding to 7.8%, down from 36.7% in 2019. Over the past three years, Gangwal has raised Rs 40,000 crore through stake sales.
The saga between co-founders Rahul Bhatia and Rakesh Gangwal began in 2019 when Gangwal formally raised concerns over corporate governance. In February 2022, Gangwal resigned from IndiGo’s board as a non-executive, non-independent director and announced plans to reduce his stake.
Rakesh Gangwal had said, “I have been a long-term investor in IndiGo and plan to gradually reduce my equity stake over the next five-plus years.”
ITC’s institutional shareholder, British American Tobacco (BAT), divested a 2.5% stake worth Rs 12,926 crore on May 28, bringing its holding down to 23.1%. BAT sold the stake to reduce its debt and support its share buyback program. The transaction reduced the overall institutional holding in ITC to 82.6%.
