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Business News/ Markets / Stock Markets/  IREDA, Zaggle Prepaid, and Vibhor Steel Tubes among 66 companies to see IPO lock-in expire in four months
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IREDA, Zaggle Prepaid, and Vibhor Steel Tubes among 66 companies to see IPO lock-in expire in four months

Data compiled by brokerage firm Nuvama Professional Clients Group indicates that 66 companies spanning various sectors are scheduled to have their pre-listing shareholder lock-ins lifted in the coming four months, amounting to a value of $21.1 billion.

Within the PSU sector, IREDA is set to witness the eligibility for trade of 1478 million shares or ₹147 crore, representing 55% of its total outstanding shares, on May 30th, as per the Nuvama. (Mint)Premium
Within the PSU sector, IREDA is set to witness the eligibility for trade of 1478 million shares or 147 crore, representing 55% of its total outstanding shares, on May 30th, as per the Nuvama. (Mint)

The Indian primary market is witnessing an unprecedented surge in the number of companies going public, with strong subscription rates and solid listing gains. Building on the momentum from the record number of companies that went public in 2023, the IPO trend is persisting in 2024. 

Against this backdrop, the secondary market, which is currently experiencing a bullish trend, is poised to see a surge in the influx of shares. Data compiled by brokerage firm Nuvama Alternative & Quantitative Research indicates that 66 companies spanning various sectors are scheduled to have their pre-listing shareholder lock-ins lifted in four months (March 04 -June 29), amounting to a value of $21.1 billion.

Also Read: Purv Flexipack share price lists with stellar 266% premium over the issue price, at 260 a piece on the NSE SME

This lock-in period ranges from one month to three years, and some companies also have multiple lock-ins. Among 66 companies, 29 are set to see their lock-in expiry in March for pre-IPO investors who had invested in the companies before they went public.

Samhi Hotels is one among these companies with multiple lock-ins. On March 7th, 5.6 million shares of the company will become eligible for trading, followed by an additional 61 million shares on March 22nd, accounting for 28% of the total outstanding shares of the company.

Similarly, RR Cabel is poised to witness the expiration of its six-month lock-in period on March 21st, resulting in 71 million shares becoming eligible for trading. This represents 63% of the total outstanding shares of the company. Likewise, Zaggle Prepaid's six-month lock-in period will conclude on March 25th, freeing up 60 million shares for trading, constituting 49% of the total outstanding shares.

Also Read: Tata Motors share price skyrockets 8% on demerger plan, crosses 1,000 level

Within the PSU sector, IREDA is set to witness the eligibility for trade of 1478 million shares or 147 crore, representing 55% of its total outstanding shares, on May 30th, as per the Nuvama. 

Between March and June, several other companies, including Azad Engineering, Vibhor Steel Tubes, India Shelter Finance, Motisons Jewelers, Suraj Estate Developers, Credo Brands, DOMS Industries, Entero Healthcare Solutions, Muthoot Microfinance, Happy Forging, RBZ Jewelers, Innova Captab, Epack Durables, Rashi Peripherals, Signature Global, Sai Silks (Kalamandir), Updater Services, Rishabh Instruments, Yatra Online, Honasa Consumer, Tata Technologies, and Muthoot Micro Fin, are scheduled to see the expiration of their IPO lock-ins.

What is a lock-in period in an IPO?

A lock-in period in an Initial Public Offering (IPO) refers to a predetermined timeframe during which certain shareholders, often including the company, promoters, and pre-IPO investors, are restricted from selling their shares in the open market.

This restriction is intended to provide stability to the newly listed company's stock price and to promote investor confidence during the early stages of trading. Lock-in periods vary in duration and can range from a few months to a few years, depending on the regulations of the stock exchange and the terms set by the company and its underwriters.

Also Read: Exicom Tele-Systems share price opens with 86.6% premium at 265 on NSE

As the lock-in period expires, the shares held by restricted shareholders become eligible for trading in the secondary market, potentially leading to increased liquidity. This period of share release can also impact the supply-demand dynamics of the stock and may influence its price trajectory in the short term.

 

Disclaimer: We advise investors to check with certified experts before making any investment decisions

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Published: 05 Mar 2024, 12:06 PM IST
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