Lock-up on nearly Rs 1.2 trillion pre-IPO shares to lift in two months

Lock up on shares worth nearly Rs 1.2 trillion ($14 billion) belonging to 50 companies will end between now and January 31, said Nuvama Institutional Equities in a note.

Most of the shares are held by promoters, strategic investors or pre-listing shareholders in companies that have gone public in recent weeks or months.

Some of the key stocks where lock up period is set to expire over the next two months are food delivery major Swiggy (3 per cent equity), Shapoorji Pallonji Group’s Afcons Infrastructure (5 per cent) and state-owned renewable energy firm NTPC Green (2 per cent).

The expiry of lock in period could have implications for these companies as some investors might look to sell their holdings.

Also, end of expiry could also result in higher weightage for these stocks in some of the global indices.

“The value pertains to the total lock-up opening shares, but it’s important to note that not all of these shares will come for sale as a sizable portion of these shares are also held by promoter and group,” said the Nuvama note.

Half of the shares allotted to investors in the anchor category ahead of an IPO 30-day lock up, while the remaining half have a 90-day lock up.

Meanwhile, certain shares held pre-listing could be subject to a six, 12 or 18-month lock up.