India, June 3 -- Promoter stake sales refer to situations where the founders or key shareholders (promoters) of a company reduce their ownership by selling shares either in the open market or through structured transactions such as an Offer for Sale (OFS) or block deals.

Such transactions are closely monitored by investors, as they can indicate a range of underlying motives. These may include profit booking at high valuations, raising capital for new ventures, meeting regulatory requirements, or addressing personal or business liquidity needs.

While a reduction in promoter holding can sometimes be viewed negatively, suggesting potential concerns about the company's future, it can also be a strategic move for reasons such as diversificat...