With stock prices in a free fall due to the pervasive coronavirus crisis, promoters of some companies have started buying their shares from the open market over the last couple of weeks. Tata Sons, JSW Steel, Bajaj Auto, Motilal Oswal and Sun Pharma are among the companies where promoters have been mopping up shares.

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Promoter purchase of stock is usually perceived by the market as a sign that the stock could be undervalued. After all, who knows the value of the business better than the promoters themselves?

Also, promoter purchases during times of panic like these help calm investors by providing a floor for the stock price.

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From the promoters’ perspective, buying the stock in a falling market is both a signalling tool as well as an opportunity to increase holdings at an attractive price.

Here are some major promoter stock purchases since the first week of March:

Bajaj Auto: ESOP Trust bought 20,000 shares worth Rs 5.3 crore

Sun Pharma: Shanghvi Finance bought 5 lakh shares worth Rs 19.4 crore

Indian Hotels: Promoter Tata Sons acquired 1.66 crore shares (1.39 percent) at Rs 107.4 per share worth Rs 177 crore

Tata Steel: Promoter Tata Sons acquired 77.4 lakh shares (0.69 percent) at Rs 287.44 per share worth Rs 222 crore

Tata Motors DVR: Promoter Tata Sons acquired 1.85 crore shares (3.64 percent) at Rs 43.15 per DVR share worth Rs 79 crore

Tata Power: Promoter Tata Sons acquired 1.39 crore shares (0.51 percent) at Rs 38.72 per share worth Rs 53 crore

Future Lifestyle: Milestone Trusteeship bought 1.10 lakh shares worth Rs 3.6 crore

Godrej Industries: Promoter group bought 76,500 shares worth Rs 3.1 crore

MRF: Promoter Group bought 480 shares worth Rs 3.2 crore

Vaibhav Global: Promoter bought 50,000 shares worth Rs 5 crore

Chambal Fertilisers: Promoter Group bought 79,800 shares worth Rs 10.4 crore

PVR: Ajay Bijli and other promoter groups bought 52,698 shares from the market between March 5 and March 12

On March 17

Bajaj Holdings: Promoter groups bought 172,000 shares worth Rs 50.1 crore

JSW Steel: Promoter group bought 950,000 shares worth Rs 20.3 crore

Welspun Enterprises: Promoter bought 40 lakh shares worth Rs 28.6 crore

Motilal Oswal: Promoter bought 14,500 shares worth Rs 8.8 crore

Future Lifestyle: Milestone Trusteeship bought 100,000 shares worth Rs 3.6 crore

Welspun India: Promoter bought 93,800 shares worth Rs 3 crore

Wonderla Holidays: Promoter bought 54,000 shares worth Rs 1 crore

On March 16

Alembic: Promoter group bought 5.41 lakh shares worth Rs 2.35 crore

GE Shipping: Promoter bought 13,700 shares worth Rs 2.9 crore

Jamna Auto: Promoter bought 10 lakh shares worth Rs 2.75 crore

JSPL: Promoter bought 2 lakh shares worth Rs 2.5 crore

Motilal Oswal: Promoter bought 23,000 shares worth Rs 1.45 crore

Sanghi Industries: Promoter bought 14 lakh shares worth Rs 3.15 crore

On March 13

Bajaj Auto: Jamnalal Sons bought 2.35 lakh shares worth Rs 61.4 crore

GMR Infra: Promoter group GMR Enterprises bought 1.45 crore shares worth Rs 24.2 crore between March 9 and 12

Chambal Fertilisers: Promoter group bought 5.65 lakh shares worth Rs 7.5 crore

Godrej Industries: Promoter group bought 1.47 lakh shares worth Rs 5.4 crore

Just Dial: Promoter bought 1.08 lakh shares worth Rs 4.2 crore

MRF: Promoter group bought 661 shares worth Rs 4 crore

First Published:Mar 18, 2020 11:56 AM IST