Stocks worth $13.52bn will become lock-in period free this year
What's the story
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."
Details
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.
What Next?
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.
Details
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.