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Economic Times
a day ago
- Business
- Economic Times
Promoters selling stakes bigger threat in the market: Sandip Sabharwal
Synopsis Sandip Sabharwal highlights promoter selling, particularly in mid and small-cap companies, as a key market risk, overshadowing a generally positive macro environment. While larger sales like SingTel and ITC impact liquidity, smaller promoter exits raise concerns about confidence in company growth prospects at high valuations. Defence and railway sectors have seen recent activity, but sustainability remains uncertain. Sandip Sabharwal, says the risk in the market is just the kind of promoter selling which we are seeing in the markets starting with the larger ones like SingTel, InterGlobe Aviation as well as ITC and then a slew of mid and smallcap promoters selling their stakes. I think that is the risk to the markets. Ex of that, the overall macro scenario looks okay. While Sabharwal is more concerned about the small and midcap promoter sales rather than the bigger ones, even the bigger ones take out liquidity from the system and restrict market upside. ADVERTISEMENT What kind of sectors are you looking for at this point in time? A lot of sectoral churning is underway. The theme of this particular month has been defence, and also some of the counters from the railway side. But what is looking good to you right now? Sandip Sabharwal: Defence stocks rallied following the Indo-Pak conflict and potential increase in orders. Some of the companies came out with very good results like Bharat Electronics, while results from some others were subdued. Railways stocks have bounced back from extreme oversold levels, like from last year levels, many of the railway-related stocks got sold off a lot, but there is no clear change in the railway investment theme at this point of time in terms of the railways picking up steam in terms of investing more like it did 2022 onwards. So, these could be just bounces because the stocks have gotten sold off a lot. The results picture which has been pretty okay and in line with expectations. Some companies have performed above, some below and so there is nothing much out there. Markets are decently placed. The risk in the market is just the kind of promoter selling which we are seeing in the markets starting with the larger ones like SingTel, InterGlobe Aviation as well as ITC and then a slew of mid and smallcap promoters selling their stakes. I think that is the risk to the markets. Ex of that, the overall macro scenario looks okay. What is the trend you draw up from the promoter exits that are happening? These are ripe valuations in the market and could not get any better. Is it warranting caution now? Sandip Sabharwal: In some of these stocks, I would say yes, because if many of these companies are giving very strong outlook for growth for their companies and are coming out and selling huge quantity of their stocks at very high valuation and are getting absorbed by the institutional investors because the companies have given very strong guidance, that itself is a dichotomy because if you are so confident, why are you selling? On the other hand, for some of the larger companies like InterGlobe or BAT for ITC, etc, there we cannot surmise the same thing because in InterGlobe Aviation we have seen continuous sales by Rakesh Gangwal over the last few years and now we are coming to the end stage of that. So, hopefully over the next one year, all of that will get sold out. For ITC also, BAT needed the money and so they have sold. I would be more concerned about the small and midcap promoter sales rather than the bigger ones. 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Time of India
a day ago
- Business
- Time of India
Promoters selling stakes bigger threat in the market: Sandip Sabharwal
Sandip Sabharwal , says the risk in the market is just the kind of promoter selling which we are seeing in the markets starting with the larger ones like SingTel, InterGlobe Aviation as well as ITC and then a slew of mid and smallcap promoters selling their stakes. I think that is the risk to the markets. Ex of that, the overall macro scenario looks okay. While Sabharwal is more concerned about the small and midcap promoter sales rather than the bigger ones, even the bigger ones take out liquidity from the system and restrict market upside. What kind of sectors are you looking for at this point in time? A lot of sectoral churning is underway. The theme of this particular month has been defence, and also some of the counters from the railway side. But what is looking good to you right now? Sandip Sabharwal: Defence stocks rallied following the Indo-Pak conflict and potential increase in orders. Some of the companies came out with very good results like Bharat Electronics , while results from some others were subdued. Railways stocks have bounced back from extreme oversold levels, like from last year levels, many of the railway-related stocks got sold off a lot, but there is no clear change in the railway investment theme at this point of time in terms of the railways picking up steam in terms of investing more like it did 2022 onwards. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Dental Implant Balintawak Cost Might Be More Affordable Than Ever! Dental implant | Search Ads Learn More So, these could be just bounces because the stocks have gotten sold off a lot. The results picture which has been pretty okay and in line with expectations. Some companies have performed above, some below and so there is nothing much out there. Markets are decently placed. The risk in the market is just the kind of promoter selling which we are seeing in the markets starting with the larger ones like SingTel, InterGlobe Aviation as well as ITC and then a slew of mid and smallcap promoters selling their stakes. I think that is the risk to the markets. Ex of that, the overall macro scenario looks okay. What is the trend you draw up from the promoter exits that are happening? These are ripe valuations in the market and could not get any better. Is it warranting caution now? Sandip Sabharwal: In some of these stocks, I would say yes, because if many of these companies are giving very strong outlook for growth for their companies and are coming out and selling huge quantity of their stocks at very high valuation and are getting absorbed by the institutional investors because the companies have given very strong guidance, that itself is a dichotomy because if you are so confident, why are you selling? On the other hand, for some of the larger companies like InterGlobe or BAT for ITC, etc, there we cannot surmise the same thing because in InterGlobe Aviation we have seen continuous sales by Rakesh Gangwal over the last few years and now we are coming to the end stage of that. So, hopefully over the next one year, all of that will get sold out. For ITC also, BAT needed the money and so they have sold. I would be more concerned about the small and midcap promoter sales rather than the bigger ones. But that said, even the bigger ones take out liquidity from the system and restrict market upside. You Might Also Like: PG Electroplast shares in focus as promoters plan Rs 1,177 crore stake sale via block deal Gangwal family to sell 3.4% stake in IndiGo via Rs 6,831-crore block deal
Time of India
2 days ago
- Business
- Time of India
D-St Bull Run Fires up Blockbuster Deals of Promoters, Shareholders
The stock market rebound in the past few months has prompted dominant shareholders and promoters of companies to trim their stakes. So far this month, they have sold shares worth over ₹50,000 crore through bulk and block deals on the bourses after a lull, continuing from where they left off before October, when the stock market was in the midst of a bull run. According to exchange data, prominent shareholders and promoters divested stakes in ITC, Bharti Airtel, InterGlobe Aviation (IndiGo), PNB Housing and One 97 Communications (Paytm) this month, along with Kfin Technologies, KPR Mill and PG Electroplast. The divestments ranged from ₹1,133 crore to ₹12,941 crore since May 1. 'A significant amount of domestic liquidity had been waiting on the sidelines for market stability,' said Ajay Saraf, ED and head of investment banking at ICICI Securities. 'With foreign funds turning positive on India's secondary market and key overhangs like geopolitical tensions and tariff concerns easing, the deal market has roared back to life.' This momentum is expected to continue as long as the current positive sentiment holds and no major crisis disrupts the environment, said Saraf. Among the largest deals, British American Tobacco sold 2.5% of its stake in ITC, worth ₹12,941 crore while Singtel affiliate Pastel Ltd sold Bharti Airtel shares worth ₹12,880 crore. BAT is the largest shareholder in ITC, while Singtel is part of the promoter group of Bharti. InterGlobe Aviation promoter Rakesh Gangwal and his family trust sold a 5.72% stake for about ₹11,564 crore. Private equity firm Carlyle's subsidiary, Quality Investment Holdings, offloaded its entire stake of 10.4% in PNB Housing Finance worth ₹2,713 crore. Ant Financial, the fintech subsidiary of Alibaba Group, sold shares of One 97 Communications worth ₹2,104 crore through open-market transactions. Kfin Technologies promoter General Atlantic Singapore Fund Pte sold shares worth ₹1,790 crore. 'The resurgence in Indian equity capital market deals is being driven by a confluence of positive factors — stabilising geopolitical tensions, easing trade uncertainties, encouraging full-year corporate earnings, improving high-frequency macro indicators, renewed FII interest, and sustained retail inflows into domestic mutual funds,' said Ranvir Davda, co-head of investment banking at HSBC India. 'We believe that IPOs, blocks, and follow-on activity in the second half of calendar year 2025 will be significantly higher compared to the first half, with multiple companies having already received Sebi approval and several other listed companies having announced plans for fund-raising.' The selling in the secondary market was not limited to large caps and extended to small and midcap companies such as PG Electroplast and KPR Mill, in which promoters reduced stakes by selling shares worth ₹1,132 crore and ₹1,232 crore, respectively. So far in May, the Nifty 50 has gained 2.05% while the Nifty Midcap 150 has risen 6.5% and the Smallcap 250 has advanced 9.2%. 'FY24 saw an all-time high in promoter exits, which was also on the back of a bullish market,' said Pranav Haldea, MD, Prime Database Group. 'While promoter buying is always a good sign, reasons for exit can vary and range from cashing out due to good valuation, setting up other businesses, debt reduction and personal reasons.' While policy announcements from the US remain unpredictable, the momentum in open-market transactions looks likely to continue, he said.
Time of India
4 days ago
- Business
- Time of India
Gangwal sells 6% stake in IndiGo for Rs 11,564 crore
MUMBAI: In one of the largest block deals in recent times, InterGlobe Aviation co-founder Rakesh Gangwal and his family have sold shares worth Rs 11,564 crore on Tuesday. The promoters sold 2.21 crore shares of InterGlobe, Indigo's parent, comprising a 5.72% stake in India's largest airline. Tired of too many ads? go ad free now The total offering was increased to 2.21 crore shares, from the initially planned 1.32 crore shares. Gangwal sold 22.10 lakh shares, while the Chinkerpoo Family Trust, associated with his family, offloaded 1.99 crore shares in the block deal on NSE. The exchange disclosure did not identify the buyers. According to the term sheet issued on Monday, the shares were offered at a floor price of Rs 5,175 apiece - a 4.5% discount to IndiGo's closing price of Rs 5,420 on the NSE as of May 26. As of March 31, 2025, the Gangwal family held a 13.53% stake in the airline. Following the latest transaction, Gangwal and his family's stake has been reduced to 7.81%. The stake sale is part of a phased exit strategy by Gangwal and his family from the company, which he co-founded with Rahul Bhatia in 2006. Three years ago, the family's holding stood at nearly 37%. Gangwal stepped down from IndiGo's board in February 2022 and publicly announced plans to gradually reduce his stake. Since then, the family has been steadily paring its shareholding. In August 2024, they sold a 5.25% stake for Rs 9,549 crore, following an earlier sale of a 5.8% stake in 2024 that fetched Rs 6,786 crore. In August 2023, Shobha Gangwal fully exited by selling her 4% stake for Rs 2,944 crore. The stake sale by Gangwal and family on Monday is one of the largest secondary market deals in recent times. On May 16, Singapore Telecommunications (Singtel) sold 7.1 crore shares in Bharti Airtel for Rs 13,221 crore. The most significant block trade ever executed in India's secondary market was in March 2023, when British American Tobacco Plc (BAT) offloaded a 3.5% stake in ITC for Rs 17,485 crore.
Time of India
4 days ago
- Business
- Time of India
IndiGo faces over Rs 2.76 crore in fines from customs authorities, airline to contest orders
Representative image IndiGo is facing penalties exceeding Rs 2.76 crore from customs authorities in Ahmedabad and Chennai, but the airline has confirmed it will challenge the demands. In regulatory disclosures on Tuesday, IndiGo said it received penalty orders of Rs 2.20 crore from the Principal Commissioner of Customs in Ahmedabad and Rs 56.2 lakh from the customs office at Meenambakkam, Chennai, reported news agency PTI. The notices were served on May 26 and 27, respectively, and relate to customs duty claims raised by the authorities. The airline asserted that all customs duties were duly paid and that it stands by the correctness of its actions. IndiGo added that it plans to file appeals with the appropriate appellate bodies. Airlines' parent company InterGlobe Aviation clarified that the penalties are not expected to materially impact its financial position, operations, or other business activities. Shares of the company declined nearly 2 per cent on Tuesday, closing at Rs 5,313.15 on the BSE. Meanwhile, in a separate development, InterGlobe Aviation saw its promoter Rakesh Gangwal and the Chinkerpoo Family Trust sell 5.72 per cent ownership through open market deals for Rs 11,564 crore. According to the National Stock Exchange's bulk deal information, Gangwal and the trust, which is administered by Shobha Gangwal and JP Morgan Trust Company of Delaware, sold 2.21 crore equity shares. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like IITD Tech Leadership Program IITD TAILP Apply Now Undo The shares were sold at a price range of Rs 5,230.99-5,235.31, with the total transaction value reaching Rs 11,563.79 crore. After these sales, Gangwal's ownership in IndiGo declined to 4.7 per cent from the previous 5.30 per cent, and simultaneously, the trust's shareholding diminished to 3.08 per cent from its earlier position of 8.23 per cent. Read more: Rakesh Gangwal, family trust offload 5.72% stake in IndiGo worth Rs 11,564 crore Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
