Lock-in on IPO shares worth ₹1.58 lakh cr to be released in two months
Locked-in shares worth ₹1.58 lakh crore of 48 companies that got listed recently will be lifted between Tuesday and end of this year.
Some of the stocks that will see their one-month lock-in to be released include Bajaj Housing Finance, Kross, PN Gadgil Jewellers, Shree Tirupati Balajee, Tolins Tyres, Western Carriers, Arkade Developers, Northern Arc Capital, Manba Finance, KRN Heat Exchanger and Diffusion Engineers.
The value pertains to the opening of total locked-in shares; it is important to note that not all of these shares will come for sale as a sizeable portion of these shares are also held by promoters and Groups, said Nuvama Alternative and Quantitative Research.
Lock-in rules
Capital market has prescribed different lock-in periods for various classes of investors. Fifty per cent of the shares allotted to anchor investors are locked-in for 90 days while the remaining is locked in for 30 days from the date of allotment.
For promoters, 20 per cent of the post-issue paid-up capital are locked in for 18 months. An allotment exceeding 20 per cent cannot be sold for six months. For non-promoters, the lock-in ends after six months.
List of companies
The opening of three month lock-in being released for recent IPOs include Sanstar, Akums Drugs, Ceigall India, Ola Electric Mobility, Unicommerce Esolutions, Brainbees, Interarch Building Products, Orient Technologies, Premier Energies, Ecos (India) Mobility, Baazar Style, Gala Precision, Western Carriers, Arkade Developers, Northern Arc Capital, Manba Finance, KRN Heat Exchanger, Diffusion Engineers.
The release of five and six months lock-in include Bharti Hexacom, JNK India, Indegene, TBO TEK, Aadhar Housing Finance, Go Digit General Insurance, Awfis Space Solutions, Kronox Lab Sciences, Le Travenues Technology, Akme Fintrade, DEE Development Engineers, Stanley Lifestyles.
Among companies whose locked-in shares will be lifted after one year include IRM Energy, Flair Writing Inds, DOMS Industries, Happy Forging and Azad Engineering.
Sonam Srivastava, Founder and Fund Manager, Wright Research said given the prevailing bearish sentiment, the anticipated release of shares worth ₹1.58 lakh crore from lock-in periods could potentially increase volatility and potential downside risks.
Nevertheless, she said the actual impact will be contingent upon several factors, including the nature of the shares, prevailing investor sentiment, the underlying fundamentals of the companies involved and broader market conditions.