Stocks worth $13.52bn will become lock-in period free this year
A report by Nuvama Alternative & Quantitative Research reveals that 54 companies will have their pre-listing shareholder lock-ins, totaling $13.52 billion, lifted between now and April 15. However, not all of these stocks will be up for sale, as promoters and groups hold a significant portion. Abhilash Pagaria from Nuvama explains, "The value pertains to the total lock-up opening shares but it's important to note that not all of these shares will come for sale."
Lock-in periods and SEBI regulations
The lock-in/lock-up period is the time during which stocks cannot be sold. India's market regulator, the Securities and Exchange Board of India (SEBI), has established different share lock-ins for various investors. For example, anchor investors have a 90-day lock-in period on 50% of allotted stocks from the date of allotment, while the remaining 50% of shares allotted have a 30-day lock-in duration. Non-promoters face a six-month lock-in period, and promoters have an 18-month lock-in.
Companies with upcoming lock-in expirations
Several companies will see stakes freed up from lock-in in the coming months. India Shelter Finance will have a 3% stake freed up on January 17, while DOMS Industries will see 6% freed up on the same day. Between January 18-26, companies such as Inox India, Muthoot Microfinance, Happy Forgings, Suraj Estate, Motisons Jewellers, RBZ Jewellers, Innova Captab, and Azad Engineering, will see 3-5% stakes freed up.
These firms are also in the pipeline
Shares of companies like Tata Technologies, ESAF Small Finance Bank, IRM Energy, Blue Jet Health, and Cello World, will see 2-5% stakes freed up between January 22 and March 26. On the other hand, firms such as IRFC, Electronics Mart, Dreamfolks Services, and Harsha Engineers, will witness 18-month lock-ins unravel.
