As lock-in ends, shares worth Rs 1 lakh crore heading to market soon

A total of 46 companies will see their pre-listing shareholder lock-in period being lifted between June 24 and September 30. This is likely to result in freeing up of shares amounting to $11.9 billion in the secondary market.

The value represents the opening of the lock-up shares held by pre-IPO investors, including promoters, anchor investors and others. However, all of these shares may not be available for sale immediately in the secondary market as a sizable portion of these shares are also held by the promoter group.

Different lock-in for different classes

The estimates encompass IPOs listed up to June 19, according to a report by Nuvama Alternative & Quantitative Research. It is to be noted the lock-in period is different for different classes of investors.

Jupiter Life Line Hospitals' one-year share lock-in period ends on September 13, and 11 million equity shares of the company, or 16% of the total outstanding shares, will be released.

Similarly, the one-year lock-in period for JSW Infrastructure ends on September 30, and 127.5 crore shares will be available for trading.

The one-month share lock-in period ends for Awfis Space Solutions on June 27, Kronox Lab Sciences on July 8 and for Le Travenues Technology (ixigo) on July 15. This will result in a significant release of a total of 3.5 million Awfis Space shares, 1.4 million Kronox Lab shares, and 17.9 million ixigo shares becoming available for trading.

According to the regulations, for company promoters, 20% of the post-issue paid-up capital must be locked in for 18 months, while any allotment exceeding this 20% threshold is subject to a lock-in period of six months.

For anchor investors, 50% of the allotted shares must be 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.

As per 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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