Between June 24 and September 30, the pre-listing shareholder lock-in period for 46 companies will be lifted, potentially releasing shares worth $11.9 billion into the secondary market. This value pertains to the lock-up shares held by pre-IPO investors, including promoters and anchor investors. However, not all these shares may be available for immediate sale, as a significant portion is held by the promoter group.
These estimates, covering IPOs listed up to June 19, come from a report by Nuvama Alternative & Quantitative Research. It should be noted that lock-in periods vary for different classes of investors.
Jupiter Life Line Hospitals’ one-year share lock-in period ends on September 13, releasing 11 million equity shares, or 16% of the total outstanding shares. Similarly, JSW Infrastructure’s one-year lock-in period ends on September 30, freeing up 127.5 crore shares for trading.
The one-month share lock-in period ends for Awfis Space Solutions on June 27, Kronox Lab Sciences on July 8, and Le Travenues Technology (ixigo) on July 15. This will result in 3.5 million Awfis Space shares, 1.4 million Kronox Lab shares, and 17.9 million ixigo shares becoming available for trading.
Regulations stipulate that for company promoters, 20% of the post-issue paid-up capital must be locked in for 18 months, while any allotment exceeding this threshold has a six-month lock-in period. For anchor investors, 50% of allotted shares are locked in for 30 days from the date of allotment, with the remaining 50% locked in for 90 days. The lock-in period for non-promoters ends after six months.
According to the Nuvama report, the 18-month lock-in period will end for 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.
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