The stock market has witnessed sharp fluctuations in the last quarter. And its effect has also been seen at the beginning of the new year. Due to this volatility, the one-year return of the market has come down to single digit. However, the performance of small companies has been excellent compared to the entire market and if the data is to be believed, the promoters of these companies have also taken full advantage of this boom. If the data of BSE is to be believed, between December 2023 and September 2024, the promoters of about 400 mid and smallcap companies have reduced their stake. At the same time, according to a report, in the last one year, the promoters of small and medium companies have raised Rs 1.2 lakh crore through stake sale.

What do the figures say

According to the data, between December 2023 and September 2024, promoters of 384 companies have reduced their stake in the company. According to a report by DSP, the pace of stake sale by promoters of small and medium companies has increased in the last 2 years. In the last 12 months, promoters of small and mid cap companies have sold shares worth Rs 1.2 lakh crore. According to the report, the selling by promoters of mid and small cap companies has been much faster than large cap companies. According to the data till September in the year 2024, the number of companies in which promoters have reduced stake in small and medium companies has been close to 400, whereas in comparison, the number of such large cap companies where promoters have reduced stake is less than 12. Companies in which promoters have reduced stake in small cap and midcap companies include Whirlpool of India, Shivalik Bimetal Controls, EasyMyTrip. Why are promoters selling stake? According to market expert Deepak Jasani in Moneycontrol's report, there can be many reasons for promoters selling stake. This can include SEBI's 75 percent promoter holding rule, efforts to raise funds for business related needs and taking advantage of the rise in the stocks of midcap and small cap companies. Out of this, the rise in the stocks of small companies has been the main reason because promoters are getting a higher price for their stake. The one-year return in Sensex and Nifty has been close to 9 percent. However, the rise in BSE smallcap and midcap has been more than 22 percent. Due to the rise in stocks, many promoters have entered the market to raise money.