Who buys those lakhs of shares from an individual seller?
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?
Usually block deals are between institutions. Check this as well.
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.
Hope this helps.