Promoter selling hits record in secondary market, buying dips to 3-year low
Driven by high valuations in sectors like telecom and aviation, this selling spree was contrasted by a sharp decline in promoter buying, which hit a three-year low.
The equity sales of company promoters in India reached a record in 2025, and their purchases fell to the lowest level since 2022, as valuation-driven monetization efforts drove sell calls throughout the year.
The year 2025 saw promoter exits worth ₹1.38 trillion through secondary market deals alone, according to data from market intelligence firm PRIME Database. This figure represents a 22% increase from the ₹1.12 trillion figure recorded in 2024. In contrast, promoter buying activity declined to ₹2,298 crore in 2025. This is a decrease from the ₹6,168 crore in purchases made in 2024 and the ₹3,791 crore recorded in 2023.
"The gap between promoter selling and buying suggests valuations in parts of the market are factoring in a lot of optimism," Prakash Bulusu, joint chief executive officer (CEO) of IIFL Capital said. "Promoters are long-term owners, so higher selling alongside very low buying points more to limited near-term upside at current prices than to a loss of confidence." He added that the trend of high promoter selling looks valuation-driven rather than sentiment-led.
However, Pranav Haldea, managing director of PRIME Database Group, said that promoter selling in itself should not be taken as a bad sign or a sign of excessive valuations. "If promoter selling is accompanied with deteriorating fundamentals of the company, then it is a red flag and needs to be looked at in greater detail," he explained.
The volume of promoter exits was driven by several large-block transactions throughout the year. The largest promoter-driven stock selling was seen in telecom major Bharti Airtel Ltd, where promoters sold equity worth ₹41,657 crore in four transactions between May and November 2025. IndiGo parent Interglobe Aviation Ltd also saw high-value promoter exits, where promoters sold shares valued at almost ₹14,500 crore across three deals.
Together, the Bharti and Interglobe stake sales accounted for nearly 41% of promoter selling in 2025.
- Promoter exits hit an all-time high of ₹1.38 trillion in 2025, up 22% year-on-year.
- Promoter buying hit a 3-year low of ₹2,298 crore, indicating a perceived lack of ‘cheap’ entry points.
- Just two companies, Bharti Airtel and InterGlobe Aviation, accounted for 41% of the total secondary market promoter selling.
- Promoters used IPOs as major exit routes alongside secondary block deals.
- Experts suggest the trend is driven by prudent rebalancing and monetization of ‘runaway’ stock prices rather than failing business fundamentals.
Sectoral heavyweights
"The trend is sharper in sectors that have seen rapid re-rating—such as aviation and telecom," Bulusu added. "These are capital-intensive businesses where stock prices have run ahead of cash flows, prompting promoters to monetize part of their holdings after strong rallies rather than exit on weakening fundamentals."
To add some context, the promoter buying/selling figures are based only on the bulk or block data from stock exchanges. Transaction data from other filings, like insider trading, has not been included.
Personal liquidity and diversification seem to be the primary drivers of the broader trend of promoter stake sales, Bulusu explained. "With a large share of wealth tied to one listed company, elevated valuations offer a natural opportunity to rebalance. Some capital may go into new ventures, but overall this reflects prudent capital allocation, not stress."
In addition to secondary market block deals, promoters used the offer for sale (OFS) mechanism to reduce holdings. The government was the biggest OFS seller this year, selling shares worth nearly ₹7,700 crore. This included an OFS of ₹3,677 crore in Mazagon Dock Shipbuilders Ltd, a ₹2,599 crore OFS in Bank of Maharashtra, and a ₹1,421 crore OFS in Indian Overseas Bank. Adani Wilmar saw its promoter, Adani Commodities, sell a 13.5% stake in the business for ₹4,829 crore.
Looking beyond secondary markets, promoters dominated stake sales even in initial public offerings. LG Electronics India Ltd's initial public offering (IPO) saw its Korean promoter offload a stake worth ₹11,600 crore, Prudential Corporate Holdings raked in ₹10,600 crore from ICICI Prudential Asset Management Co.'s offering, HDFC Bank cashed in ₹10,000 crore in HDB Financial Services Ltd's market debut, while Tata Sons, too, offloaded a stake worth ₹7,500 crore in Tata Capital Ltd.
Lack of buying
The reduction in promoter buying in 2025 was characterized by a lack of interest from large-scale promoters or institutional investors. The largest recorded purchases were by the promoters of Godrej Industries Ltd, who increased their total holding by 2.24% for ₹1,191 crore. This was followed by Paradeep Phosphates Ltd at ₹176 crore and Solara Active Pharma Sciences Ltd at ₹99 crore.
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