The trend of sell-downs through block deals that was popular in the past couple of years has seen a sharp decline in recent months due to the correction in equity markets, as per exclusive data from Prime Database.
In the first quarter of 2025, sell-downs worth only ₹62,539 crore have been reported compared to ₹1.92 lakh crore in the same period in 2024. This significant drop in sell-downs can be attributed to the decrease in stock prices, which has made it less favorable for private equity firms, large funds, and promoters to exit or reduce their stakes in companies.
Block deals valued at over ₹61,000 crore were recorded in each of the first three months of 2024, but in 2025, the trend has been on a decline since January. Lower prices and valuations have deterred stakeholders from pursuing their exits or profit-taking strategies.
The Nifty 50 has experienced a 14% decline between September 2024 and February 2025, marking five consecutive months of losses. Foreign portfolio investors have been net sellers in the Indian markets for the past five months, affecting all sectors, with some witnessing more selling than others.
Valuations have significantly dropped from their peaks, with the Nifty’s price to earnings ratio standing at around 20 compared to its historical averages. Smallcap and midcap valuation multiples have also seen a considerable erosion from their previous highs.
Compared to the previous year, the size of deals has decreased as well. The largest deal so far in 2025 was the sale of a stake in Bharti Airtel for ₹8,485 crore, followed by IHC Capital Holding selling a stake in Adani Enterprises for ₹1,832 crore.
Overall, the correction in stock prices has led to a decline in sell-down deals in 2025, reflecting the challenging market conditions.
