With the stock market bouncing back in the latter part of 2020, promoters of companies have used this period to offload shares of their companies to the public in droves.
These have been either through primary share sales through initial public offerings (IPOs) to list a company on the stock exchanges, or through secondary share sales of listed companies. Many companies have tried to squeeze through share sales by promoters before September 30, 2020.
UTI AMC, whose IPO is currently open, is an offer for sale by promoters. Chemical equipment maker GMM Pfaudler recently made waves after its offer for sale by promoters priced at a steep discount to the stock’s market price.
Investors are lapping up shares being sold by promoters and wait with bated breath for the shares to list or being allowed to trade.
This can be seen in the response to many IPOs and secondary sales