Ending of the lock-in period does not necessarily mean investors who received shares in the pre-IPO sale will offload their entire holdings. But, whether pre-IPO investors are selling or holding on will be of interest for traders as large blocks of selling tend to weigh down share prices in the near-term.
AgenciesThe lock-in period for pre-IPO investors differs for different types of investors. For instance, promoters must hold at least 20% of the shares received for a year from the IPO, while institutional investors must hold for at least six months. For an anchor investor, the lock-in period is 90 days on 50% of the shares allotted and a lock-in of 30 days on the remaining 50% of the shares allotted.
In April last year, the Securities and Exchange Board of India cut the lock-in period for investors who purchase shares in a pre-IPO issue, or promoters’ shareholding in excess of 20%, to six months from one year.
According to data compiled by Nuvama Alternative & Quantitative Research, the one-month lock-in period for Yatharth Hospital shares will end on September 1, while that of SBFC Finance and Concord Biotech will end on September 11 and September 13, respectively.
Three three-month lock-in periods for Ikio Lighting and HMA Agro will end on September 11 and September 27, respectively.
Similarly, the three-year lock-in periods for Happiest Minds and Route Mobile will end on September 15 and September 16, respectively.
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