Promoters Sold ₹79,000 Cr Shares in 360 Days: Why IPO Returns Plummeted

• Promoters offloaded shares worth ₹79,000 crore in 360 days, primarily through Offer For Sale (OFS), despite a booming IPO market.
• ₹1.11 lakh crore was raised via OFS, meaning funds went to promoters and old investors, not directly to the companies.
• Key sellers included LG Electronics Inc., Prudential Corporate Holdings, HDFC Bank, Tata Sons, and startup founders like Peyush Bansal.
• Reasons for selling: capitalizing on high valuations, wealth diversification, and providing exits for PE-VC investors.
• This heavy selling coincided with a sharp drop in average IPO returns from 29-30% (2023-24) to just 9% (2025), with many stocks falling below issue price.

Why It Matters: Promoters' massive share sales during IPOs led to lower returns, urging investors to exercise caution.