Promoters, PE make a fortune so far in 2023 raising over Rs 1 lakh crore; Can the same be said for retail?

Data compiled by CNBC-TV18 for the month of August shows that while promoters and PE funds who either pared stake or exited the company, made returns ranging from 2.5 times to as high as 100 times on their investment. However, the stocks after listing have not returned as much to the retail investors.

In fact, some of them are even trading below their IPO price with cuts of as high as 50 percent. Here is a list of some of those companies:

The diagnostic chain saw nearly 13 percent equity change hands in a block deal on Thursday. PI Opportunities Fund and Lavender Rose were the sellers. As per data from the company's RHP, the average acquisition cost of shares for PI Opportunities Fund was Rs 158, while they sold those shares at Rs 862, pocketing a handsome five times on their investment.

However, the stock is trading just above its IPO price of Rs 796, meaning the retail investor has not managed to secure a significant profit on his / her investment.

In an interaction with CNBC-TV18, the company's promoter Gangadi Madhukar Reddy said that he does not anticipate further PE selling anytime soon.

The Decorative Asthetics player saw 30 percent of its equity being exchanged in a large deal last month. The seller, Evergraph Holdings, made a handsome 7x return on their investment. However, the stock, which listed in 2021, is up only 26 percent from its IPO price.

JSW Energy also saw a block deal in which its promoter entity, JSW Investments sold 2.1 crore shares for Rs 717.6 crore. The returns were nearly 70 times their average acquisition cost. The stock has also tripled from its IPO price.

While most of these names have had PE investors or promoters making a fortune on their investment, some have had to sell their stake at a loss too.

Based on Shriram Finance's RHP, the average acquisition cost of Omega TC's shares stood at Rs 177. However, in a block deal that took place in the stock last week, Omega TC sold its stake at Rs 83 apiece, nearly half of its acquisition price. Similar is the case for RBL Bank, where CDC Group had sold its stake at a 20 percent loss, having been allotted preferential shares at Rs 500 apiece.

But is this trend necessarily a bad thing? Is it likely to continue?

V Jayasankar of Kotak Investment Banking told CNBC-TV18 in an interaction that not all promoter sales need to be viewed negatively.

"I think it's all driven by either a PE investor wanting an exit over a three to five year period, which is fair, because the normal period for a PE investor is three to five years and if the markets are at its robustness, why not," he said.

"As far as promoters are concerned, you have to look at the context. And in India with promoters getting comfortable about giving up control or when there are multiple promoters, one of the promoter continued to be the surviving entity, I think it's very likely that you'll see more of these transactions," Jayasankar added.