While the primary market continues witnessing a healthy flow of new public offers, as many as 37 companies, across categories, are slated to have their pre-listing shareholder lock-ins lifted over the next four months.
"Between August 22, 2023, and December 31, 2023, a total of 37 companies are slated to have their pre-listing shareholder lock-ins lifted," said a report from brokerage firm Nuvama Alternative & Quantitative Research.
According to data compiled by Nuvama Alternative & Quantitative Research, the one-month lock-in period of Netweb Tech will end on August 23. Yatharth Hospital, SBFC Finance and Concord Biotech are among the stocks that will see their one-month share lock-in opening in the coming few weeks.
The report showed that there are at least two stocks - Netweb Tech and Syrma SGS Tech - whose lock-in opening date is in August while in September, at least 10 stocks have their lock-in opening date. In October, at least 13 stocks have their lock-in opening dates, and in November and December, at least 11 and 6 stocks, respectively, will see their lock-in opening.
As per the report, the lock-in period of these stocks ranges from one month to three years. For example, on October 3, the three-year share lock-in will end for Angel One. Mazagaon Dock will see the three-year share lock-in opening on October 9, as per the report.
After an IPO is listed, investors are required to keep the shares for a certain period of time. They can sell those shares only after the lock-in period ends. This is to ensure that the companies stabilise and establish themselves before shareholders can exit.
The length of the lock-in period differs for different kinds of investors.
As per brokerage firm Upstox, “In the case of institutional investors such as banks and hedge funds, the period is usually one year. The period typically is six months for individual investors who buy shares through an IPO. For an anchor investor, the period is usually longer than the other investors. Thus, the lock-in period varies among the different IPO investors.”
As per BSE data, as many as 58 IPOs (Initial Public Offerings) have been launched this year so far out of which, 18 are on BSE main board and 40 are on the BSE SME segment.
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