Shares Worth $350 Million Become Tradable as IPO Lock-in Ends for 8 Companies

With Monday, March 24, marking the end of shareholder lock-in periods for multiple recently listed companies, a total of 20 crore shares across 8 companies are set to become eligible for trading. While this development opens up the possibility for fresh supply in the market, it’s important to clarify that eligibility does not automatically mean these shares will be sold.

Here’s a company-wise breakdown of the lock-in expiries and their potential implications:

Sanathan Textiles

• Lock-in Period: 3 months
  
• Shares Eligible: 26 lakh
  
• Sanathan Textiles will see 26 lakh shares, equivalent to 3% of its outstanding equity, become eligible for trading. The stock at 10:02 AM is seen trading at ₹329.60 per share, down by 3.92%.
  

Mamata Machinery

• Lock-in Period: 3 months
  
• Shares Eligible: 11 lakh
  
• Known for its robust IPO subscription (195 times), Mamata Machinery will see 11 lakh shares or 4% of its equity become tradable on March 24. The share price of Mamata Machinery is trading higher by 2.44% at ₹403.30.
  

DAM Capital

• Lock-in Period: 3 months
  
• Shares Eligible: 44 lakh
  
• After a strong IPO subscription and listing, DAM Capital has witnessed a correction aligned with broader market trends. On March 24, 44 lakh shares, amounting to 6% of its equity, became eligible to trade. The stock currently trades below its IPO price at ₹222.75, down by 3.73%. 

Concord Enviro Systems

• Lock-in Period: 3 months
  
• Shares Eligible: 11 lakh
  
• With 5% of its equity—11 lakh shares—now eligible for trading, Concord Enviro Systems is among the set of companies reaching the end of its 3-month shareholder lock-in on March 24.
  

Quality Power

• Lock-in Period: 1 month
  
• Shares Eligible: 45 lakh
  
• With 6% of its outstanding equity now eligible for trading, Quality Power share price is trading down by 4.78% at ₹335.20 as of 10:12 AM. 

Western Carriers

• Lock-in Period: 6 months
  
• Shares Eligible: 5.3 crore
  
• Western Carriers stands out with a significant 52% of its equity—5.3 crore shares—becoming tradable. The stock trades considerably below its IPO price of ₹172.
  

Northern Arc Capital

• Lock-in Period: 6 months
  
• Shares Eligible: 9.9 crore
  
• Northern Arc Capital leads the pack with 9.9 crore shares, or 61% of its total equity, becoming eligible for trading today. The stock remains below its IPO issue price of ₹263.
  

Samhi Hotels

• Lock-in Period: 1.5 years
  
• Shares Eligible: 3.44 crore
  
• After a 1.5-year lock-in, 3.44 crore shares (or 16% of equity) of Samhi Hotels became tradable. The stock is currently trading just above its IPO price of ₹126.
  

A Note on Lock-In Expiry

It is essential to understand that while the expiry of lock-in periods increases the free-float in the market, it does not necessarily mean that all these shares will be offloaded immediately. It merely grants shareholders the eligibility to trade them, subject to their own investment timelines and market outlook.

Conclusion

This development is likely to be observed closely by market participants for potential shifts in supply and sentiment, especially in stocks where a large portion of equity is coming out of lock-in.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.