Out of the total estimated outflow, Rs 267,350 crore worth shares are likely to face selling pressure in next two months. Are Indian primary markets slowing down still?
A slew of newly listed companies in the stock exchanges may soon sink into a phase of turbulence as lock-in period of various shareholders of their initial public offerings (IPOs) is set to expire starting 25 August till December-end this year. As lock-in period opens up, existing stakeholders of the pre-listing period will be free to pare their stake in these companies which often leads to selling pressure.
A total of 37 companies are slated to open their pre-listing shareholders lock-ins in the next few months until December. IPOs of these companies had opened for exchange listing in the period October 2020 to August 2023. These stocks are likely to face an estimated fund outflow of worth Rs 180,000 crore if shareholders decide to exit after the lock-in period expiry, according to an analysis by Nuvama Alternative & Quantitative Research. The analysis considers the closing price of all the stocks as on August 21.