Markets abuzz with block deals; major trades expected to continue on June 4

Despite the block deal frenzy, the broader market witnessed some correction. On June 3, the Sensex closed down 636.24 points (0.78%) at 80,737.51, while the Nifty slipped 174.10 points (0.70%) to end at 24,542.50.

The capital markets have been upbeat over the past two sessions, with a flurry of block deals energising sentiment and more major transactions expected on June 4. Key names likely to see action include Tata Technologies, Aditya Birla Fashion and Retail (ABFRL), Alkem Labs, and Indegene. Bloomberg reported that on the back of increased block deals, daily turnover has reached almost $14 billion, the highest since early November, following a drop to below $11 billion in early March, when significant foreign fund outflows pushed local shares to multi-month lows.

Also read: Block trades power cash market turnover to seven-month high

Big trades lined up for June 4

According to Moneycontrol, citing sources, US private equity giant TPG is planning to fully exit its stake in Tata Technologies via a block deal. The shares are held through TPG Rise Climate SF Pte Ltd, and the firm is expected to sell a 2.1% stake for approximately $74 million. The offer price range is between Rs 744.5 and Rs 767.5 per share, representing a 0–3% discount to the June 3 closing price.

Another expected mover is Aditya Birla Fashion, with Flipkart reportedly planning to offload its entire 6% stake via a block deal. The stake is held by Flipkart Investments Pvt Ltd, and Goldman Sachs is acting as the banker for the transaction.

In the healthcare tech space, CNBC-TV18 reported that CA Dawn Investments, an affiliate of Carlyle Group, is likely to sell a 10.2% stake in Indegene Ltd through block deals valued at around Rs 1,420 crore.

Jayanti Sinha, a major shareholder in Alkem Laboratories, is also set to offload a 1.42% stake in a transaction estimated at Rs 825 crore, with a floor price of Rs 4,850 per share, implying a 3% discount, according to reports.

Surge in block deal activity

The heightened activity on June 4 follows a busy two-day stretch in the capital markets.

On June 2, Tata AIG General Insurance acquired 9.01 lakh shares (0.12%) of AU Small Finance Bank from Leapfrog Rural Inclusion (India) at an average price of Rs 693 per share.  Around 56.3 lakh shares of Niva Bupa changed hands in a block trade on June 2 with reports indicating that Fettle Tone and Krishnan Ramchandra were likely to sell up to 7.2 percent of their stake in Niva Bupa Health Insurance Company through block deals.

On June 3, Hyundai Motor and Kia Corporation exited their holdings in Ola Electric Mobility via block deals. Hyundai sold 10.8 crore shares at Rs 50.70 apiece (Rs 552 crore), while Kia offloaded 2.7 crore shares at Rs 50.55 (Rs 138 crore). Citigroup Global Markets Mauritius emerged as the buyer, acquiring 8.61 crore shares at Rs 50.55 per share.

Other notable trades included Arizona Globalservices Pvt Ltd buying 70 lakh shares of Media Matrix Worldwide from G R D Securities at Rs 14.39 each. Meanwhile, 6.70 crore shares, accounting for 13.44% of the total equity of Aptus Value Housing, changed hands via block deal.

According to CNBC-TV18, a large transaction in Yes Bank saw nearly 9.4 crore shares, or around 3% of the total equity, change hands at an average price of Rs 21.5 per share, totaling approximately Rs 2,022 crore. Additionally, around 1.63 crore shares, or 9.22% equity, of Zinka Logistics Solutions worth ₹692 crore changed hands at 423 per shares.

Despite the block deal frenzy, the broader market witnessed some correction. On June 3, the Sensex closed down 636.24 points (0.78%) at 80,737.51, while the Nifty slipped 174.10 points (0.70%) to end at 24,542.50.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.