By the promoters Rs. Sale of one lakh crore shares

- Promoters made money with investors following the boom

- Some promoters and their companies sold around $4-5 billion worth of shares in the month of August alone: ​​the market's average market capitalization almost doubled.

AHMEDABAD: The bull horse in the Indian stock market has been moving forward with a one-sided boom since the month of March, not only the small investors but also the profit-making promoters are wringing their hands in this boom. According to a recent report, in 2023, the promoters have sold a stake worth around 1 lakh crore. This figure was around 81-82,000 crore in mid-August and has reached around 1 lakh crore by the end of the month.

Interestingly, with four months left in the current year, this figure for 2023 is almost double the total sales of the promoter's share in 2022 and represents a four-fold growth over 2018. There has been a significant increase in sales activities during this calendar year by the promoter units. The promoters have so far raised a substantial amount of over $12 billion by selling their stake.

Digging deeper, evaluating the total value of sales of the promoter entity in relation to the average market capitalization, a ratio of around 0.3 times was seen in 2020. Importantly, however, the average market capitalization of the market almost doubled between 2020 and 2023.

August has also been a great month, with promoters and their companies selling shares worth around $4-5 billion. Adani Group, Jindal SW Energy and Indigo are major contributors to this figure. Especially in the month of August Rs. 100 crore to around Rs. Significant deals up to 500 crores were done.

A common question is that what does this figure of sales of promoters indicate? From one perspective, promoters have faith in the company but want to attract other investors by selling some investment. An important point is that despite the fact that approximately 1 lakh crore shares have been sold by the promoters of the big gaja, there is no slowdown in the market and these sales have been easily absorbed by the market. This situation shows the strength of the Indian market, which is a positive aspect in terms of investment.

Sale of promoters' share

year	Amount (in Rs. Crores)
2018	19258
2019	38266
2020	51371
2021	32870
2022	41020
2023	80754

(Note: Figures for 2023 are as of mid-August)