As the banks consortium sold ubl share worth Rs. 5825 crores to Heineken International BV in a block deal which has a particular time. What’s the impact of block deal and bulk deal in the price of the scrip for the day and what if banks sold it in open market, is it possible to dump such a large quantity of shares in open market at market value as it could lead to the crash of price for the scrip.
In my view, the overall sentiment on the stock would increase if there are multiple block or bulk deals. If several deals happen in a stock continuously over a period of time, it can be viewed as a sign of confidence and stock price may rise in the near future.But a big institution or investor buying shares through such deals does not necessarily mean that the stock will rise. Many a time, the large block of share purchase, which is disclosed to the exchange, could be the last leg of buying by the large investor In short, some large HNIs use this as a bait to attract more buyers.
Copied from Economic Times.
The banks could sell the shares in the open market, Yes any amount of shares can be sold but it might have demand oversupply and thence price could fal , hence large shareholder prefer to do these transactions through block deals.
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Thank you for the information.