When promoters sell shares of Hundreds of crores in value through 'Block Deal' at a particular price then who is the buyer on the other side?

General
1

Who buys those lakhs of shares from an individual seller?

2

Usually block deals are between institutions. Check this as well. 

3

Hello Trader,

I have been reading on this topic myself and had the same questions as you.

Some facts you would like to know:

1) Block deals are pre arranged transactions executed between the seller and buyer at a prearranged time on the exchange.

2) If the seller does not find a buyer for the large quantity, the seller sells the holdings in the open market in small quantities.

I have copied the below info from an older thread on the net for quick reading:

  • In every deal, there is a buyer and a seller.
  • The buyer is bullish and seller is bearish (or not so bullish).
  • Thus a block deal does not mean much.
  • However, if a stratergic buyer is buying into a stock and is expected to bring his expertise/additional business to the company, it is a positive for the company.
  • It is important who is buying and who is selling.
  • It is not possible to have a general rule "block deals are good" or "block deals are bad".
  • It varies from case to case.

http://www.e-investing.in/day-trading/537-block-deals.html

Hope this helps.

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