Since March 1, promoters of about 230 companies have bought shares worth more than Rs 3,000 crore from their companies, taking advantage of the crash in valuations in the aftermath of the Covid-19 outbreak.
Promoters of more than 200 small and midcap stocks have also seized the opportunity to up their stake through the latest valuations carnage.
The plunge in stock prices has made promoters rather active in Mumbai.
Tata, Godrej and Bajaj are not alone in buying more shares of the companies they own. Promoters of more than 200 small and midcap stocks have also seized the opportunity to up their stake through the latest valuations carnage.
Since March 1, promoters of about 230 companies have bought shares worth more than Rs 3,000 crore from their companies, taking advantage of the crash in valuations in the aftermath of the Covid-19 outbreak.
Larsen & Toubro bought nearly 7.5 million shares of Mindtree worth Rs 70 crore from the open market last week. IndiaBulls promoters acquired shares worth Rs 35 crore of IndiaBulls Housing Finance. Similarly, promoters of Welspun Enterprises, Chambal Fertilisers and MRF bought shares worth up to Rs 30 crore.
Analysts say that promoters believe the fundamentals of their companies may be overshadowed by a weak market sentiment, which is transitory.
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“It’s extremely important for investors to track the insider activities of the company during the current situation. When promoters buy shares of their company, it indicates that their business is undervalued and hence they see longterm value in it,” said Raamdev Agrawal, chairman, Motilal Oswal Financial Services.
