Indian Stock Market Alert: $12 Billion Worth of Shares from 46 IPOs to Hit Market as Lock-in Period Expires

Between June 24 and September 30, the lock-in period for pre-IPO shareholders of 46 companies will end, freeing up shares worth $11.9 billion in the secondary market. This means that shares held by investors before the companies went public, including promoters and anchor investors, will become available for trading. However, not all these shares may be sold immediately, as many are held by the promoter group.

IPO Listings and Share Release Estimates

The estimates include IPOs listed up to June 19, based on a report by Nuvama Alternative & Quantitative Research. Different classes of investors have different lock-in periods.

For example, the one-year lock-in period for Jupiter Life Line Hospitals ends on September 13, releasing 11 million shares, or 16% of the company’s total shares. Similarly, JSW Infrastructure’s lock-in period ends on September 30, making 127.5 crore shares available for trading.

Upcoming Short-term Lock-ins Ending

Other companies like Awfis Space Solutions, Kronox Lab Sciences, and Le Travenues Technology (ixigo) have shorter lock-in periods ending soon. Awfis Space’s one-month lock-in ends on June 27, releasing 3.5 million shares. Kronox Lab’s period ends on July 8, freeing up 1.4 million shares. Ixigo’s lock-in ends on July 15, releasing 17.9 million shares.

According to regulations, company promoters must lock in 20% of the post-issue paid-up capital for 18 months, while any shares exceeding this 20% are locked in for six months. Anchor investors must lock in 50% of their shares for 30 days from the allotment date, with the remaining 50% locked in for 90 days. Non-promoter shareholders have a six-month lock-in period.

Notable Companies

The Nuvama report also lists several companies with 18-month lock-in periods ending soon, including Landmark Cars on June 24, Abans Holding on June 26, Kfin Technologies on June 27, Elin Electronics on June 28, Radiant Cash Management on July 2, and Sah Polymer on July 9.