Shares worth Rs 1.75 lakh crore are set to be unlocked in the next three months (August 28-November 27), as the pre-listing lock-in period of promoters, anchor investors, and other shareholders in 57 companies is set to expire, according to a report by Nuvama Institutional Equities.
While this unlocking will increase the supply of shares that can be sold, not all of these shareholders may sell their stakes as the majority are held by promoters and other long-term investors.
Of these, the lock-in of seven companies will end on Thursday (August 28). Some of these are Schloss Bangalore, owner of Schloss Bangalore, owner of hotel chain The Leela, Brigade Hotels, and Aegis Vopak Terminals.
High-Performers and underperformers facing unlocking
Premier Energies, whose 12-month lock-in period expires on September 1 will infuse supply of 125 million more shares worth Rs 19,325 crore, the maximum among those expiring in the next 30 days, according to the report. This is followed by PN Gadgil Jewellers, Syrma SGS Tech, and Gopal Snacks.
The share price of Premier Energies has risen 131% from issue price, Syrma SGS Tech 227%, while Gopal Snacks has fallen 8%.
Market Impact and Expert Outlook
Experts believe that while there would be selling pressure as pre-IPO investors wait for this period to end, this will only be temporary. Ruchit Jain, head of technical research at Motilal Oswal said, “There could be some profit-booking in but the stocks with good fundamentals will not be affected.”
On Thursday, shares of heavily subscribed IPOs Vibhor Steel Tubes and Borana Weaves were unlocked after lock-in. Vibhor Steel has fallen nearly 2% in two sessions and Borana Weaves 1.2%.