Does it corroborate?
TSL sold 50 lakh shares
2 entities bought 15 lakh
Where are the 35 lakh or so shares?
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NSE Volume : 83.6 Lakhs
BSE Volume: 6.5 Lakhs
Total Volume: ~ 90 Lakhs.
Total Bulk sold: 64.85 Lakhs
Total Bulk purchase: 33.60 Lakhs
==> ~31 Lakh bulk shares absorbed by open market.
Is the inference drawn right ?
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If open market can absorb 30+ lakh shares, then why will promoters sell (only) 15-20 lakh to SG and others (out of 60 lakh sold) and that too at 541 when the share price was about 660 in the morning?
But FPI/FII increasing stake instills confidence, its on the radar now, whatever promotor’s reasons for selling may have been.
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In case promoter are so sure of decent growth this year, why they are selling at a discount ? They gave a guidance of 15-20% top line growth…are we going to see , lower end of the growth ?
FIIs entry gives visibility to the stock…There is negligible institutions holding currently in the company…
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Well, my 2 cents here, if someone’s exit criteria are set on Promoter’s selling + High Valuations may take their respective calls.
It is okay to churn out the portfolio if something does not work and move on to other businesses. In the future, if SBCL seems favorable, then someone may think of taking re-entry. In my personal view, there wasn’t any significant reason for a ferocious run in SBCL in the recent past.
Disc: No reco.
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What I am aware of is when IPO happened ages back, it was only a primary issue and there was no secondary sale of shares. Given they had done so much wealth creation, promoter wanted to monetize part of his stake for his personal needs.
Even post this stake sale they own a large stake in the company and are positive about the future of the company.
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Finally stock exchange notification is here
On 7th Aug, following shares were sold by promoters as below
- TSL Holdings - 50 Lakh @541 per share. 8.68% of total equity sold
- Devinderjeet Singh Sandhu- 1.14Lakh shares @591 per share. 0.2% equity sold
- Gurbir Sandhu - 3.67Lakh shares @565 per share 0.64% equity sold
- Kanav Anand - 3,700 shares @646 per share 0.006%
So in total, 9.626% shares sold by promoters. So post this sale, their current shareholding has come down to 50.97% (from 60.6% earlier)
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That’s really big stake. It means promoters acknowledge the market price has run ahead of fundamentals considerably, and hence wanted to cash out.
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If that was the case then they would have sold at 750 and not at 541.
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Why do you think they need to clarify anything to the market? Do you clarify to everyone when you sell the shares you hold. Promoters gave sufficient disclosure post the sale. Does that not suffice?
At Rs714 the stock had indeed run up too much. The question you need to ask yourself is if the stock is expensive at Rs552 with a multi decadal opportunity in EVs and decadal opportunity in smart meters ahead.
What you are forgetting is there was demand for 9.6% of the company in that Rs541 to Rs646 band. Surely these investors are not buying with their eyes closed
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My hypothesis:
Such deals won’t happen overnight. SBCL was at today’s price 2 months back. Ground work was on. They locked the price but wanted to wait till Q1 results so that price doesn’t go low, and hence avoid re-negotiations. Anyone in sane mind would do that.
PS: Will delete this non-value add comment later.
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Wow, so promoter selling almost 10% stake in the company does not ask for any explanation ? Who is the one selling and this huge quantity ? BTW only ~3 percent went to FIIs and rest to retail… ?
“At Rs714 the stock had indeed run up too much. The question you need to ask yourself is if the stock is expensive at Rs552 with a multi decadal opportunity in EVs and decadal opportunity in smart meters ahead.” → So are you saying promoters are sooo stupid that they are selling 10% of the company to book some profits and they don’t know about this multidecadal opportunity…
And ofcourse there will always be buyers in the market…When the share prices fall by 70% then also there are buyers in the market so this is a very lame argument…
And ofcourse I am not the promoter of the company so I can sell whenever I want. All I was saying is they could have made a simple communication on the reason for selling 10% of the company 
please don’t take it personally…
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Sorry to check this again. If there is an internal transfer between promoters, then also, in reporting the Promoter who has bot the shares (due to internal transfer) has to also report that they have bot the shares. I tried to look on website, but there is no information. So then the question is whether it was genuine internal transfer or was sold to someone else. In Aug 7 disclosure, BoFA and SocGen have bot large quantities which are actually p-Notes. Request if insight is given.
In general promoters and Institutions selling a 5-10% stake in the bull market is a big signal to be careful of valuations and not to get carried away. There wasn’t a solid reason for the 100% run in the recent past.
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My take on the recent promoter selling… I think this gives a clearer picture and I believe most of the promoter sell were absorbed by institutional investors… The case might be the institutional investors wanted an entry to the stock but without the promoter selling the stock prices would have gone further up and hence a bad deal for the institutional investors hence they might have asked the promoter to offload shares… I used to work in Investor Relations previously in a publicly listed company and I have seen such conversations take place… Anyways I might be completely wrong
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As per your screenshot 29l shares are absorbed by market.(rough calculation)
61.7L shares sold by promoters
33.46L shares bought by institutions
i.e 54.23% shares bought by institutions. Remaining 28.24L shares (45.77%) bought by public.
If what you are saying is true then why did promoters offload more shares than required as part of the deal? That’s the only concern here.
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