Adani is investing money in his own companies
Interesting trends are being seen in the Indian stock market. Whereas earlier promoters were selling stakes at high valuations, now the same giants are buying shares of their own companies on a large scale. From Adani to Birla Group, they are investing money in their own companies. After all, what is the reason behind this trend and what does it mean for investors?
After two years of continuous heavy selling, Indian corporate promoters have changed their strategy in 2026. While during 2024-25, the promoters took advantage of high valuations by selling equity worth about $56 billion, now after the market decline, they have taken a U-turn and invested more than $4 billion, about Rs 38 thousand crore, in their own companies.
Giants made purchases
According to the report of brokerage firm Jefferies, Adani Group has been at the forefront of this purchase. Adani Enterprises, the group's flagship company, raised about $2 billion through a rights issue, in which promoters invested in proportion to their stake. Similarly, GMR Group also played a big bet. Domestic promoters of GMR Airports invested around $1 billion to buy 7.3% stake from foreign investors. This purchase was done through different methods like direct buy, option and FCCB buyback.
In the power sector, promoters of JSW Energy also invested $317 million through preferential allotment, which increased their stake. Aditya Birla Group increased its stake by purchasing shares from the open market through Grasim Industries.
Why did purchasing increase?
According to experts, the biggest reason behind this trend is the valuation coming to normal levels. The Indian market was trading at around 22x P/E in 2024-25, which was above the historical average. In such a situation, the promoters earned profit by selling their stake. Now, due to the market decline, valuations have come down to around 20x, which is close to the long-term average. Due to this, promoters have started finding shares of their own companies cheap.
In which sectors there is maximum purchasing?
According to the report, this buying has been mainly concentrated in asset-heavy sectors—such as power, infrastructure and real estate. Promoters increased their stake the most in Godrej Properties, where an increase of about 4.5% was recorded. At the same time, promoters also invested in Maruti Suzuki, although there was a slight change in the stake due to the large market cap of the company. Apart from this, stake was also increased in companies like Indus Towers, Jindal Stainless and Macrotech Developers.
What signals for investors?
Buying by promoters is generally considered a positive sign in the market. When company owners buy their own shares, it reflects confidence in the future prospects of their business. However, experts also warn that this trend is not widespread yet, but is limited to selected companies. This means that promoters are not investing everywhere, but are making strategic investments thoughtfully.
In the last two years, promoters' stake in BSE-500 companies had declined to a historic low of 48.4%, but a slight recovery is being seen in 2026. This change is an indication that the Indian corporate sector is viewing the market decline as an opportunity rather than a threat. If the market remains stable in the coming time, then this purchase by the promoters may increase further.
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